India’s Private Sector Grows at Record Growth in August, HSBC PMI Shows

India’s private sector economy recorded its fastest expansion on record in August, fueled by a surge in new orders, according to HSBC’s flash Purchasing Managers’ Index (PMI) survey released Thursday.

The HSBC flash India Composite Output Index, which tracks month-on-month changes in combined output across manufacturing and services, jumped to 65.2 in August from 61.1 in July.

“India's private sector economy posted its sharpest expansion since survey data were first collected in December 2005 during August,” the report said.

The four-point increase marked the steepest growth since the survey’s inception, underscoring robust demand that lifted activity across sectors. Businesses reported one of the strongest rises in sales volumes on record, the survey noted. The final PMI data for August will be released early next month.

The flash PMI, compiled by S&P Global, is based on responses from around 400 manufacturers and 400 service providers.

The HSBC Flash India Manufacturing PMI, a composite measure based on new orders, output, employment, suppliers’ delivery times, and inventories, rose to 59.8 in August from 59.1 in July, signalling a quicker improvement in factory conditions. The reading was the highest since January 2008.

“There was considerable strength in demand for Indian goods and services in August,” the survey said. “Both manufacturers and service providers saw new order intakes rise at sharp and accelerated rates on the month, underpinning a near survey-record overall expansion.”

According to the survey, heavier workloads in August were driven by stronger demand from customers across Asia, the Middle East, Europe, and the United States.

The HSBC Flash India Services PMI Business Activity Index also climbed to 65.6 in August, up from 60.5 in July, pointing to a sharp acceleration in service sector growth.

India’s ambitions to reach a $10 trillion economy in the coming decades are increasingly anchored in manufacturing, with semiconductors, electronics, electric vehicles, renewables, and defence emerging as key growth engines. The government has stepped up capital investment in infrastructure, industrial capacity, and job creation to support this goal.

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