Manufacturing drives India's flash PMI to 60.7 in July, private sector shows robust growth

New Delhi, July 24
India's private sector showed robust growth in July, fuelled by strong manufacturing and global demand, the HSBC Flash India Composite Purchasing Managers' Index (PMI) showed on Thursday.



The headline HSBC Flash India Composite PMI Output Index, compiled by S&P Global, rose to 60.7 in July from 58.4 in June.

The Manufacturing PMI index climbed to 59.2 in July from 58.4 in June - its highest level in nearly 17-and-a-half years.

The Services PMI was 59.8 in July, down from 60.4 in June. While services activity continued to grow, the pace of expansion softened, according to the note.

"India's flash composite PMI remained healthy in July at 60.7. The strong performance was bolstered by growth in total sales, export orders, and output levels. Indian manufacturers led the way, recording faster rates of expansion than services for all of the three aforementioned metrics," said Pranjul Bhandari, chief India economist at HSBC.

International orders received by private sector firms in India rose sharply at the start of the second fiscal quarter (Q2 FY26).

"Meanwhile, inflationary pressures continue to heat up as both input costs and output charges rose in July. Finally, business confidence fell to its lowest mark since March 2023, while employment growth moderated," Bhandari noted.

The Indian companies remained optimistic about output growth over the next 12 months.

There is a firm pick-up in employment, especially in the service sector, suggesting healthy job creation accompanies the expansion of both India’s manufacturing and service sectors, according to the note.

While goods producers indicated the slowest increase in output for three months during May, service providers reported the fastest rise since March 2024.

At the composite level, the latest upturn was the quickest in just over a year. Monitored companies attributed growth to buoyant demand, investment in technology and expanded capacities, said the HSBC survey.