India’s economy kicked off 2025 with robust momentum as both manufacturing and services sectors posted accelerated growth in January, according to the latest HSBC Flash PMI data released on Friday. The HSBC Flash India Composite PMI climbed to 59.5 from December’s 57.8, signaling sustained expansion above the crucial 50 threshold.
Compiled by S&P Global, the flash estimates highlight improving business conditions for manufacturers and service providers alike. Despite a pickup in inflation from December, input cost and output price inflation rates remained moderate, offering some relief to economic pressures.
HSBC’s Chief India Economist Pranjul Bhandari noted that the PMI signals point to faster growth across both sectors. ‘Manufacturing and services both saw accelerated expansion,’ she said, though the manufacturing PMI for January fell short of 2025’s average so far.
New orders surged sharply after a slight dip toward the end of last year, driving the private sector’s upbeat performance. Input cost pressures intensified, hitting goods producers harder than service firms. Survey respondents credited rising demand and aggressive marketing for the sales boom, with manufacturing outpacing services in the recovery speed.
International orders showed their strongest growth in four months, with key markets in Asia, Australia, Europe, Latin America, and the Middle East snapping up Indian goods and services. After flat employment in December, private sector hiring resumed in January, bolstering optimism.
Looking ahead, businesses expressed confidence in the 12-month outlook for business activity, underpinned by this broad-based uptick. As India navigates global headwinds, these figures paint a picture of resilience and potential for continued strength in the coming months.