India’s Flash PMI Hits Record 65.2 in August 2025

India’s private sector economy witnessed its fastest growth since the launch of survey data in December 2005, with the HSBC Flash India Composite PMI Output Index rising sharply to 65.2 in August 2025 from 61.1 in July, according to S&P Global. The strong momentum was led by record growth in the services sector and robust expansion in manufacturing.

PMI Highlights

• Composite PMI: Jumped to 65.2, marking the highest reading since data collection began.
• Services PMI: Hit a record high of 65.6, supported by strong new business orders both domestically and internationally.
• Manufacturing PMI: Improved to 59.8 from 59.1, the best performance since January 2008.

Demand & Export Growth

Demand conditions strengthened further in August, with new orders rising sharply across both services and manufacturing. Export orders recorded their fastest pace of growth since 2014, driven by markets in Asia, the Middle East, Europe, and the US.

Employment Trends

The private sector continued to add jobs for the 27th consecutive month, led by strong hiring in the services sector. This sustained employment growth reflects the confidence of businesses in future demand.

Pricing & Margins

• Input costs rose due to higher wages and elevated raw material prices.
• Output charges increased at the sharpest rate in over 12 years, showing strong pricing power among firms.
• Margins improved as companies successfully passed on cost pressures to customers amid heightened demand.

Business Confidence

Optimism among private sector firms reached its highest level since March 2025, supported by expectations of sustained robust demand in the coming year. Businesses expressed confidence in long-term growth prospects, citing resilient consumer demand and strong export orders.