India’s private sector activity accelerated sharply in June 2025, with the HSBC Flash India Composite PMI Output Index climbing to 61.0, up from 59.3 in May, marking the strongest monthly expansion in 14 months, according to data released by S&P Global.
This surge was driven by robust increases in both manufacturing and services activity. The HSBC Flash India Manufacturing PMI rose to 58.4 in June from 57.6 in May, while the Services PMI Business Activity Index increased to 60.7 from 58.8.
Key factors behind this momentum included:
- A record rise in new export orders since the series began in 2014.
- Strengthened demand from Asia, Europe, the Middle East, and the Americas.
- Increased hiring, especially in the manufacturing sector.
- Softer input cost inflation, reaching a 10-month low.
Commenting on the data, HSBC’s Chief India Economist Pranjul Bhandari noted that India’s strong growth in June was primarily fueled by export demand and rising backlogs, which in turn encouraged more hiring. Although both input and output prices rose, the pace of inflation moderated from earlier highs.
The data, collected between June 9 and 18, signals strong momentum as India closes out the first quarter of FY26, with sustained optimism among businesses despite a slight decline in overall sentiment compared to previous months.
Ahmedabad Plane Crash