Is Growth Gaining Momentum for Manufacturing and Services in India This January?
Synopsis
January saw a notable surge in growth for India's manufacturing and services sectors, with the HSBC Flash PMI indicating robust increases in new orders and output. This positive trend is accompanied by a rebound in business confidence and job creation, revealing an optimistic outlook for the private sector.
Key Takeaways
Growth in manufacturing and services accelerated .
HSBC Flash PMI rose to 59.5 , indicating strong expansion.
New orders and output increased significantly .
Job creation resumed in the private sector.
Optimism for future business activity is high among firms.
New Delhi, Jan 23 (NationPress) In January, growth accelerated for both manufacturing and services sectors in India, as indicated by the HSBC Flash PMI report released on Friday. This data revealed significant increases in new orders and output, along with a resurgence in job creation and a revival in business confidence across the nation.
The HSBC Flash India Composite Output Index rose from 57.8 in December to 59.5 in January, reflecting a robust expansion rate that surpasses the long-term average.
Improvements were observed in both manufacturing and service sectors. Although the rates of input cost and output charge inflation picked up, they remained moderate compared to previous months, according to the HSBC Flash India PMI by S&P Global.
“The growth indicated by the HSBC Flash PMI has picked up for both manufacturing and services. However, the January figures for manufacturing PMI still fall short of the 2025 average,” noted Pranjul Bhandari, Chief India Economist at HSBC.
After a dip in momentum at the end of 2025, new orders saw a quicker rise, primarily driven by a surge in domestic demand. Input cost pressures intensified, particularly for goods manufacturers over service providers, according to Bhandari.
Both manufacturing and service companies reported faster increases in output, with growth rates being quite similar.
The report highlights that the surge in private sector activity is supported by a more substantial influx of new business.
Survey participants attributed rising sales to improving demand conditions and proactive marketing efforts. Manufacturers experienced a more significant upturn compared to service providers, although both sectors saw growth accelerating.
“January’s data indicated a noticeable increase in international orders, marking the highest level in four months. Key markets for Indian goods and services included Asia, Australia, Europe, Latin America, and the Middle East,” the report stated.
Employment in India's private sector resumed growth in January, following a stagnant December.
Indian private sector firms expressed optimism regarding the 12-month outlook for business activities, as per the report.
Point of View
This report emphasizes the positive trajectory of India's growth in both manufacturing and services. The trends suggest a resilient economy that is adapting to challenges and leveraging opportunities for expansion, reinforcing the nation's position in the global market.
NationPress
7 May 2026
Frequently Asked Questions
What does the HSBC Flash PMI indicate?
The HSBC Flash PMI is an early indicator of economic activity, measuring changes in new orders, output, and employment in the manufacturing and services sectors.
How did the composite index change from December to January?
The HSBC Flash India Composite Output Index increased from 57.8 in December to 59.5 in January.
What factors contributed to the growth in January?
The growth in January was attributed to higher new orders, improved business confidence, and a resurgence in job creation.
Which sectors showed improvement?
Both manufacturing and services sectors showed improvement in growth rates.
What is the outlook for India's private sector?
The outlook for India's private sector remains optimistic, with firms expecting continued growth over the next 12 months.
