October PMI: India Business Activity Climbs to Four-Month High
Business activity in India's private sector picked up strongly in October and reached its highest point in four months. Healthy demand at home, combined with firm orders from international markets, gave momentum to both factories and service providers. The data also suggested some easing in inflationary pressures.
The HSBC Flash India Composite Output Index, which captures joint activity in manufacturing and services, rose to 56.7 from 55.9 in September. Any figure above 50 indicates that economic activity is expanding. This reading is the fastest rate of business activity growth recorded since June.
Companies in manufacturing and services both reported improving market conditions and a rise in new business. Overseas demand stayed strong, with export orders growing at their quickest pace in six months.
HSBC's Chief India Economist, Pranjul Bhandari, said that growth in manufacturing output and new orders was broadly in line with September. The most important factor, she stated, was the revival in export demand. She added that export orders had not seen such strong growth since June 2025.
Manufacturers responded to rising demand by increasing stocks of raw materials and finished goods. Meanwhile, the pressure from production costs and selling prices continued to ease, which is a welcome sign for inflation.
Job market conditions were mixed. Growth in private sector employment slowed. Service providers, after adding staff for nine months in a row, nearly stopped hiring this month. Manufacturing employment rose, but only marginally.
Several companies believe their current staffing is enough to handle present workloads, which is why large-scale recruitment is not seen as necessary right now.
Outstanding work also fell for the third straight month. The combined decline was the sharpest in six and a half years, showing that businesses are getting through their workload more efficiently.
In addition, the HSBC Flash India Manufacturing PMI came in at 54.9 for October, reflecting continued expansion in manufacturing activity.