Archive · 25 Jul 2026
India's Private Sector Growth Slows Sharply in July
India's private sector growth has slowed down a lot in July.
The numbers that measure this growth, called PMI, have dropped to their lowest levels in a long time.
This is because of problems like tensions in the Middle East and issues with supplies.
Even though things are growing slower, they are still growing.
The people who study this say that companies are preparing for more problems by buying more supplies and raising prices to protect their profits.
India's private sector growth slowed sharply in July, with the HSBC Flash India PMI Composite Output Index falling to 54.3 from 57.1 in June.
The Services PMI Business Activity Index dropped to 53.1 in July from 57.4 in June, its lowest level in 53 months.
A PMI reading above 50 indicates expansion, while below 50 signals contraction.
Pranjul Bhandari, Chief India Economist at HSBC, attributed the slowdown to renewed tensions in the Middle East and supply-side shocks.
Despite the slowdown, output and new export orders rose, and price pressures firmed.
- Who
- India's private sector
- What
- Sharp decline in private sector growth
- When
- July 2024
- Where
- India
- Why
- Renewed tensions in the Middle East and supply-side shock
Economic Concerns
Growth Persistence
Economic Slowdown
Economic Concerns
The sharp decline in PMI indicates a significant slowdown in private sector growth, raising concerns about economic stability.
Growth Persistence
Despite the slowdown, the PMI remains above 50, indicating continued expansion in the private sector.
- HSBC Flash India PMI Composite Output Index
- 54.3 in July, down from 57.1 in June
- Services PMI Business Activity Index
- 53.1 in July, down from 57.4 in June
- PMI Threshold
- Above 50 indicates expansion, below 50 indicates contraction
- Chief India Economist at HSBC
- Pranjul Bhandari
- Key Factors
- Middle East tensions, supply-side shock, increased inventories, price pressures
Sources
July PMI slumps: India’s private sector growth at lowest level since 2022; Service PMI at 53-month low
India’s economic activities slows to over 4-yr low as West Asia tensions weigh on
India's private sector growth slows to over four-year low in July as services weaken: HSBC Flash India PMI
India pvt sector growth over 4-year low in July, PMI shows
India's private sector activity hits four-year low in July: Flash PMI
India's private sector growth dips to over 4-year low, services lose momentum: HSBC Flash PMI
HSBC PMI: Indian Private Sector Activity Hits Slowest Pace Since March 2022
India Private Sector Growth Slows To 3-Year Low In July, Flash PMI Slumps To 54.3
