India’s private sector roared into January with accelerated expansion in manufacturing and services, boosting the HSBC Flash Composite PMI to 59.5 from December’s 57.8. Friday’s S&P Global data underscores a resilient economy shrugging off mild inflationary upticks.
Manufacturers and service firms reported brighter outlooks, with input and output inflation holding steady at moderate paces. This development comes as a welcome sign for policymakers monitoring growth versus price stability.
‘PMI indicators show both sectors speeding up,’ said HSBC’s Pranjul Bhandari, Chief India Economist. Manufacturing gained ground but trailed 2025 averages, while new orders rebounded vigorously after a late dip.
Cost pressures mounted more acutely on goods makers, yet buoyant demand and marketing pushes drove sales higher across the board—manufacturing faster than services. International inflows hit a four-month high, with exports flowing to Asia, Australia, Latin America, Europe, and the Middle East.
Hiring resumed following December’s flatline, adding to the positive employment narrative. Businesses projected optimism over the next year, confident in ongoing expansions.
These readings affirm India’s status as a growth engine, with private sector vitality likely to support broader economic targets. As the year unfolds, sustained new business and exports could propel further gains.