Indias Business Activity Hits Four-Month High in October Driven by Domestic and Export Demand: PMI Data

New Delhi, October 23 (Daily Kiran) : India’s private sector experienced a significant surge in business activity in October, reaching its highest level in four months. According to flash Purchasing Managers’ Index (PMI) data released by HSBC, robust domestic demand and strong orders from foreign markets have propelled growth in both the manufacturing and services sectors. Additionally, inflationary pressures have shown signs of easing.

The HSBC Flash India Composite Output Index rose to 56.7 in October, up from 55.9 in September. A reading above 50 indicates an expansion in economic activities, marking the fastest growth since June.

Data indicated that companies in both sectors reported improvements in market conditions and an uptick in new orders. Export demand remained strong, with the fastest growth in export orders recorded in the past six months.

Pranjul Bhandari, Chief India Economist at HSBC, noted that while production and new orders in the manufacturing sector remained steady around September levels, the most significant factor was the surge in export demand. This marked the strongest increase in export orders since June 2025.

In response to rising demand, manufacturers have increased their inventory of both raw materials and finished goods. Furthermore, the pressure on production costs and selling prices has been consistently decreasing, signaling relief on the inflation front.

However, the employment landscape presents a mixed picture. The pace of job growth in the private sector has slowed, with service sector companies nearly halting new hiring after nine consecutive months of increasing staff. Conversely, while the manufacturing sector did see job growth, it was limited.

Many companies believe that their current staffing levels are sufficient to handle existing workloads, reducing the immediate need for large-scale new hiring.

The report also highlighted a decline in backlogs for the third consecutive time, marking the fastest drop in over six and a half years. This indicates that companies are completing work more efficiently than before.

Moreover, the HSBC Flash India Manufacturing PMI recorded a figure of 54.9 in October, reflecting ongoing expansion in manufacturing activities.