India’s private sector growth moderated slightly in October, as a slowdown in services offset gains in manufacturing, according to the HSBC Flash India Purchasing Managers’ Index (PMI) released on Friday. The survey recorded the slowest increase in new orders and output since May 2025, alongside weaker international sales.
The HSBC Flash India Composite PMI Output Index, compiled by S&P, slipped to 59.9 in October from 61 in September, still well above the 50 mark that signals expansion. The services activity index eased to 58.8 from 60.9, reflecting a softer rise in demand, while the manufacturing output index climbed to 62.4 from 61.1, indicating solid factory growth.
Job creation slowed, marking the joint-weakest pace in 18 months, while price trends were mixed—input costs rose at the weakest rate since June, but output charge inflation increased. Businesses stayed optimistic, though confidence dipped slightly.
Economist Pranjul Bhandari said the modest rise in manufacturing was likely driven by GST rate cuts, which boosted demand and eased cost pressures. The report added that US tariffs have begun weighing on exports, yet firms remain upbeat, expecting gains from new products, marketing, and technology investments.
