India witnessed a rise in activities within the manufacturing and services sectors in January, according to data released by HSBC Flash PMI on Friday.
The HSBC Flash India Composite PMI index climbed to 59.5 in January, up from 57.8 in December, indicating accelerated growth.
Compiled by S&P Global, the HSBC Flash India PMI reveals favourable conditions for manufacturers and service providers during the month. Despite an increase in inflation since December, input costs and output charges remained moderate overall.
Growth Momentum and Cost Pressures
Pranjul Bhandari, Chief India Economist at HSBC, stated that the PMI signals faster growth in both manufacturing and services sectors. Although the manufacturing PMI rose, January’s figure remained below the 2025 average.
Bhandari noted that after a slight dip towards the end of 2025, new orders surged sharply in January. Input cost pressures increased rapidly, impacting goods producers more significantly than service providers.
Drivers Behind Sector Expansion
The report highlights that the main catalyst for the faster pace of private sector activity was the rapid rise in new business orders. Survey participants attributed higher sales to increased demand and aggressive marketing campaigns.
The manufacturing sector showed a quicker recovery compared to services, although both sectors experienced accelerated growth. January’s data also recorded a strong rise in international orders, the highest in the last four months. Key export destinations for Indian goods and services included Asia, Australia, Europe, Latin America, and the Middle East.
Employment and Outlook
After no change in employment levels in December, hiring resumed in the private sector during January. Assessing the business outlook for the next 12 months, Indian private sector companies remained optimistic about their growth prospects.
This data reflects a positive start to the year for India’s core sectors, despite ongoing inflationary challenges.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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