India’s Private Sector PMI Hits 14-Month High in June 2025

India’s private sector activity accelerated sharply in June 2025, recording its fastest growth in 14 months, according to the HSBC India Flash Composite Purchasing Managers Index (PMI). The index rose to 61, up from 59.3 in May, signalling strong economic momentum across both the manufacturing and services sectors.

Why in News?

The HSBC India Flash PMI for June has shown a significant jump in business activity, with new domestic and export orders, especially in manufacturing, fueling the surge. This marks the 47th consecutive month of expansion, highlighting India’s resilience and recovery amid global economic fluctuations.

What is the Composite PMI?

• A weighted average of the Manufacturing PMI and Services PMI.
• A value above 50 indicates expansion, while below 50 indicates contraction.

PMI June 2025 Reading

• Composite PMI: 61 (highest since July 2024)
• Previous Month (May 2025): 59.3 (revised downward)
• Growth observed across both manufacturing and services, with manufacturing leading.

Drivers of Growth

• Surge in New Orders: Driven by domestic demand and international sales.
• Export Boost: Strong performance in manufacturing exports.
• Tech Investments & Efficiency Gains: Contributed to productivity growth.
• Employment Surge: Strong job creation in manufacturing; moderate in services.

Price & Capacity Trends

• Input and Output Prices: Still rising but at slower rates.
• Backlogs of Work: Increased at a rate above the long-term average.
• Capacity Pressure: Persistent, leading to the highest hiring rate in manufacturing.

Employment Growth

• Hiring Uptrend: Companies hired full-time and part-time staff.
• Manufacturing saw a peak in employment growth.
• Services sector hiring softened slightly compared to May.