India’s private sector economy continued its strong momentum in July 2025, with the HSBC Flash India Composite Output Index registering 60.7—barely down from June’s 61.0—signalling robust growth across both manufacturing and services sectors.
The flash manufacturing PMI surged to 59.2 from 58.4 in June, marking its highest level in nearly 17.5 years. This was driven by solid expansions in output, new orders, and export demand. The corresponding Manufacturing Output Index rose to 62.5 from 62.1 in June, highlighting strong factory floor activity.
Meanwhile, the services sector saw a modest softening. The HSBC Flash India Services PMI Business Activity Index eased to 59.8 from June’s 60.4, but remained elevated by historical standards.
On the inflation front, input and output price pressures intensified. Manufacturers and service providers reported rising costs of raw materials including steel, aluminium, food items, and transport. This led to a faster pace of charge inflation across both segments.
However, business sentiment declined to its lowest level since March 2023, as concerns around rising competition and inflation weighed on optimism. Employment growth also moderated, reaching the weakest pace in 15 months. Backlogs rose at the fastest rate in five years, especially in the services sector.
Despite challenges, international orders remained strong, with notable demand from Asia, Europe, and the U.S., and export order growth improving especially for services.
The HSBC Flash PMI survey was compiled by S&P Global using data collected between July 9–21, 2025.
