India’s private sector continued its strong momentum in March 2025, as the HSBC Flash India Composite PMI Output Index came in at 58.6, slightly lower than February’s final reading of 58.8. Despite the marginal dip, the reading remains well above the long-run average of 54.7, reflecting robust expansion across the economy.
The manufacturing sector outperformed services this month. The HSBC Flash India Manufacturing PMI rose to 57.6 from 56.3 in February, while the Manufacturing Output Index surged to 60.6, its highest since July 2024. This sharp growth was led by strong demand and new orders, both domestic and international.
On the services front, the HSBC Flash India Services PMI Business Activity Index eased to 57.7, down from 59.0 in February, amid heightened competitive pressures and a moderation in export order growth.
Input costs rose sharply in March, especially in manufacturing, due to increased spending on electronics, rubber, food items, and vehicle parts. However, output price inflation softened, rising at the slowest pace since February 2022.
Despite rising costs, businesses continued hiring to manage workloads, though job creation slowed to a six-month low. Confidence remained positive overall, though slightly lower compared to February.
The PMI data suggests India closed FY24 on a strong footing, driven by resilient demand and a rebound in manufacturing activity.
