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HSBC Flash India PMI indicates robust economic conditions continue in January


The Indian economy continues its robust growth into the New Year, as indicated by the HSBC Flash India Composite PMI Output Index, reaching 61 in January. The flash results released on Wednesday highlighted a substantial improvement in the health of the Indian private sector economy, marking the thirtieth consecutive month within expansion territory.

In January, the rate of growth surged, reaching the sharpest level since September 2023, rising from 58.5 in December. Service providers exhibited a stronger increase in activity compared to manufacturers, with growth accelerating in both sectors. The upturn is attributed to favorable economic conditions, demand strength, and ongoing improvements in new business inflows.


International orders experienced the most significant increase since October, contributing to the rise in total new business inflows. The HSBC Flash India Services PMI Business Activity Index for January was 61.2, up from December’s final of 59, while the HSBC Flash India Manufacturing PMI Output Index in January rose to 60.5 from 57.4 in December.

Pranjul Bhandari, Chief India Economist at HSBC, noted that the economy’s faster growth in January is led by stronger manufacturing output and more robust business services activity. Despite quick rises in input prices, the increase in output prices was relatively smaller.

The data release is timely, providing insights ahead of the Interim Budget 2024-25, expected to be presented by Union Finance Minister Nirmala Sitharaman on February 1. Despite expectations of a potential slowdown in the fourth quarter of the fiscal year, the economy is projected to grow by 7.3% this fiscal year.