Rising from 57.8 in December to 59.5 in January, the HSBC Flash India Composite Output Index – a seasonally adjusted index that measures the month-on-month change in the combined output of India’s manufacturing and service sectors – indicated a sharp rate of expansion that was above the long-run series average.
Trends improved at both manufacturers and service providers. Meanwhile, aggregate rates of input cost and output charge inflation remained moderate despite quickening since December, said the HSBC Flash India PMI by S&P Global.
“Growth, as signalled by the HSBC flash PMI, picked up pace for both manufacturing and services. Despite the rise in the manufacturing PMI, January’s figure remained below the 2025 average,” said Pranjul Bhandari, Chief India Economist at HSBC.
After losing some momentum at the end of 2025, new orders rose more rapidly – led by a faster pick up in domestic orders. Input cost pressures rose quickly, though more for goods producers than for service providers, Bhandari mentioned.
There were quicker increases in output at manufacturing companies and their services counterparts, with rates of growth broadly similar.
According to the report, underpinning the acceleration in growth of private sector activity was a faster expansion in overall new business intakes.
According to survey members, sales were fuelled by strengthening demand conditions and aggressive marketing campaigns. Manufacturers noted a quicker upturn than service providers, though growth picked up pace in both cases.
“January data showed a marked upturn in aggregate international orders, one that was the greatest in four months. Asia, Australia, Europe, Latin America and the Middle East featured in the qualitative part of the survey as the main destinations for Indian goods and services in the latest month,” said the report.
Hiring across India's private sector resumed in January, following no change in employment during December.
When assessing the 12-month outlook for business activity, Indian private sector companies were optimistic, the report mentioned.
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