FX.co ★ India Private Sector Growth Remains Robust

In July 2025, the HSBC India Composite PMI experienced a slight decline, dropping to 60.7 from June's 14-month peak of 61.0, according to preliminary data. Nonetheless, the index still significantly exceeded its long-term average of 54.8, indicating strong economic activity. Although the pace of growth in the services sector eased slightly, it remained robust by historical measures, while manufacturing output achieved its highest growth since April 2024. Sales, export orders, and output all registered notable increases. However, employment growth decelerated to the lowest rate seen in 15 months. The backlog of work increased markedly, reaching the sharpest rise in nearly five years. Inflationary pressures intensified, with input cost inflation remaining steady though below its long-term average. Conversely, output price inflation accelerated as companies transferred higher costs to customers, surpassing the average trend of the series and affecting both manufacturing and services sectors. Additionally, business confidence dipped to its lowest since March 2023, reflecting concerns about rising costs and heightened competition.