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India's Economic Growth Accelerates in January as PMI Hits 59.5

India's private sector economic activity accelerated sharply in January, with the HSBC Flash Composite PMI rising to 59.5. The growth was driven by a faster expansion in new business intakes, particularly from domestic orders. International orders for Indian goods and services also saw their greatest increase in four months, with demand from multiple global regions. The positive trend led to a resumption of hiring across the private sector and a rebound in business confidence for the year ahead.

Key Points: India's Jan PMI Hits 59.5, Shows Sharp Growth in Manufacturing & Services

  • Composite PMI rose to 59.5
  • New domestic orders rose rapidly
  • International orders saw greatest upturn in 4 months
  • Private sector hiring resumed in January
2 min read

Growth picks up pace for both manufacturing, services in India in Jan: HSBC Flash PMI

HSBC Flash PMI shows India's private sector growth accelerated in January, with strong new orders, renewed hiring, and rebounding business confidence.

"Growth, as signalled by the HSBC flash PMI, picked up pace for both manufacturing and services. - Pranjul Bhandari, HSBC"

New Delhi, Jan 23

Growth picked up pace for both manufacturing and services in India in January as the HSBC Flash PMI figures on Friday showed quicker increases in new orders and output, alongside the reinstatement of job creation and a rebound in business confidence in the country.

Rising from 57.8 in December to 59.5 in January, the HSBC Flash India Composite Output Index - a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors - indicated a sharp rate of expansion that was above the long-run series average.

Trends improved at both manufacturers and service providers. Meanwhile, aggregate rates of input cost and output charge inflation remained moderate despite quickening since December, said the HSBC Flash India PMI by S&P Global.

"Growth, as signalled by the HSBC flash PMI, picked up pace for both manufacturing and services. Despite the rise in the manufacturing PMI, January's figure remained below the 2025 average," said Pranjul Bhandari, Chief India Economist at HSBC.

After losing some momentum at the end of 2025, new orders rose more rapidly - led by a faster pick up in domestic orders. Input cost pressures rose quickly, though more for goods producers than for service providers, Bhandari mentioned.

There were quicker increases in output at manufacturing companies and their services counterparts, with rates of growth broadly similar.

According to the report, underpinning the acceleration in growth of private sector activity was a faster expansion in overall new business intakes.

According to survey members, sales were fuelled by strengthening demand conditions and aggressive marketing campaigns. Manufacturers noted a quicker upturn than service providers, though growth picked up pace in both cases.

"January data showed a marked upturn in aggregate international orders, one that was the greatest in four months. Asia, Australia, Europe, Latin America and the Middle East featured in the qualitative part of the survey as the main destinations for Indian goods and services in the latest month," said the report.

Hiring across India's private sector resumed in January, following no change in employment during December.

When assessing the 12-month outlook for business activity, Indian private sector companies were optimistic, the report mentioned.

- IANS

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Reader Comments

R
Rohit P
Good numbers, but the report also mentions input cost pressures rising quickly. As a small business owner, that's my biggest worry. If raw material prices keep going up, this growth might not be sustainable for long. The government needs to keep inflation in check.
A
Arjun K
The PMI crossing 59 is very encouraging! It shows domestic demand is strong. The fact that hiring has resumed is the best part – more jobs mean more spending power for common people. Fingers crossed this translates to better salaries too.
S
Sarah B
Reading this from an investor perspective. The broad-based growth and rebound in business confidence are key positive indicators. The geographical spread of international orders (Asia to Latin America) reduces dependency on any single market. Promising data.
M
Meera T
Waah! This is what happens when policies start to work on the ground. Growth in both sectors means a balanced recovery. Hope the benefits reach tier-2 and tier-3 cities as well, not just the metros. Jai Hind!
D
David E
While the headline number is strong, it's wise to remember this is a 'flash' estimate. Also, the manufacturing PMI is still below the 2025 average as per the HSBC economist. Let's wait for the final data and see if this pace holds.

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