Manufacturing pushes India’s flash PMI to 60.7

New Delhi

India’s private sector showed strong growth in July, led by manufacturing and international demand, according to the HSBC Flash India Composite Purchasing Managers’ Index (PMI) released on Thursday. The headline index rose to 60.7 in July, up from 58.4 in June — the highest in over a year.

The manufacturing PMI jumped to 59.2 in July, marking its best level in nearly 17 and a half years. Meanwhile, the services PMI stood at 59.8, slightly lower than June’s 60.4. Though services grew, the pace slowed slightly.

Pranjul Bhandari, Chief India Economist at HSBC, said the rise in PMI was supported by increases in sales, exports, and output. “Manufacturers outpaced services in all three areas — sales, export orders, and output,” she added.

Private sector firms saw a sharp rise in international orders as the second quarter of FY26 began. However, inflation pressures remain a concern, with rising input costs and higher output prices. Business confidence also dipped to its lowest since March 2023, and employment growth showed signs of slowing.

Despite that, firms are still hopeful about future output, especially in services, where job creation remains healthy. The growth is being supported by strong demand, new technology adoption, and expanding capacities, according to the HSBC survey.

The report highlighted that while manufacturing output had slowed in May, it rebounded in July, contributing to the fastest composite growth seen in over a year. The findings reflect India’s resilient economy and solid performance across both manufacturing and services.