India’s private sector witnessed a robust surge in business activity in June 2025, with the HSBC Flash India Composite Purchasing Managers’ Index (PMI) climbing to a 14-month high of 61.0, up from 59.3 in May. The sharp uptick was driven by strong domestic demand, record-breaking export orders, and accelerated hiring, signaling sustained economic momentum across both manufacturing and services sectors.
📈 Key Highlights from the June PMI Report
- Composite PMI: Rose to 61.0, marking nearly four years of uninterrupted expansion
- Manufacturing PMI: Increased to 58.4 from 57.6 in May, reflecting robust output and new orders
- Services PMI: Jumped to 60.7, the highest since August 2024, supported by strong domestic and international demand
“New export orders continued to fuel private sector business activity, especially in manufacturing,” said Pranjul Bhandari, Chief India Economist at HSBC.
🌍 Record Export Orders and Global Demand
International sales surged to their highest level since data collection began in 2014, with manufacturers leading the charge. Export demand from regions including Asia, Europe, the Middle East, and the Americas contributed to the spike, reinforcing India’s growing role in global supply chains.
👷♂️ Job Creation at Record Levels
The combination of rising backlogs and strong demand prompted companies to ramp up hiring, particularly in manufacturing, where employment growth hit a series peak. Service providers also added jobs at a solid pace, although slightly slower than in May.
💰 Easing Price Pressures
Input cost inflation softened to a 10-month low, allowing firms to limit price hikes and remain competitive. This aligns with recent data showing consumer inflation at a six-year low, giving the Reserve Bank of India more room to support growth through potential rate cuts.
📉 Business Confidence Dips Slightly
Despite the upbeat data, overall business sentiment dipped to its lowest in over two years, with service providers expressing caution amid market uncertainties and global trade tensions.
Stay tuned for more updates on India’s economic indicators.
