India’s private sector maintained a strong growth streak in October even as the pace of expansion moderated slightly. According to the latest HSBC India Composite PMI, compiled by S&P Global, the index stood at 60.4, down from 61.0 in September, signalling continued robust business activity across both manufacturing and services.
Despite the mild slowdown, the composite PMI remained above the 60-mark for the fifth consecutive month — indicating broad-based expansion supported by strong domestic demand, rising new orders, and steady output across industries.
Broad-based growth led by manufacturing and services
While manufacturing growth remained steady, the services sector saw a marginal dip in momentum, with the HSBC India Services PMI registering 58.9 in October versus 58.8 in September. Both sectors, however, continued to signal expansionary conditions, driven by sustained client inflows and business optimism.
The report noted that new orders increased sharply, although at a slightly softer pace compared to the previous month. The manufacturing sector contributed strongly to the composite upturn, supported by resilient export orders and a rebound in domestic consumption.
Inflationary pressures ease
One of the key takeaways from the October PMI release was the easing of input cost pressures. Both manufacturing and service firms reported slower rises in input prices, marking one of the lowest inflation readings in over a year. Output charges also rose at a modest pace, suggesting easing price pressures amid stabilizing supply chains and moderating fuel prices.
Employment continues to rise
Employment levels across the private sector continued to improve in October, as companies expanded capacity to handle rising order volumes. The pace of job creation, though modest, remained consistent with the broader growth trend seen throughout 2025.
Expert commentary
Commenting on the findings, Pranjul Bhandari, Chief India Economist at HSBC, said,
“India’s composite PMI at 60.4 signals another month of healthy expansion. Although there was a slight moderation from September, growth remains well above trend, supported by resilient demand and easing input cost inflation. The steady PMI readings reinforce India’s position as one of the fastest-growing major economies globally.”
Outlook
The survey highlighted that business confidence remains strong heading into the final quarter of FY26, with firms expecting continued demand momentum, aided by the festive season and easing policy conditions.
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