India’s pvt sector biz growth at 6-month high

India's private sector sees fastest growth in six months, driven by services, despite rising costs and global risks, HSBC survey shows

Update: 2025-02-21 12:03 GMT
“The rate of growth was also well above its long-run average. Service providers noted a quicker increase than manufacturers, and one that was the strongest in just under a year. With the majority of manufacturing PMI sub-components retreating since January, the index slipped from 57.7 in January to 57.1 in February,” the survey showed.

New Delhi: India’s private sector activity accelerated in February, driven by robust services growth that helped offset a slight moderation in manufacturing, according to an HSBC Flash India survey. The composite PMI output jumped to 60.6 from 57.7 in January, while the services index surged to 61.1 from 56.5 — its highest since March last year. Manufacturing dipped marginally to 57.1 from 57.7 but remained in expansion territory.

Stronger sales boosted hiring, although rising output prices allowed businesses to pass on higher input costs. “Rapid restocking continues to lift export orders, and healthy acceleration in orders and output keeps firms optimistic,” said Pranjul Bhandari, chief India economist at HSBC. Despite global risks such as potential US tariffs, the survey suggests continued job growth for Asia’s third-largest economy.

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