Archive · 24 Jul 2025
India's Private Sector Growth Remains Strong Despite Inflation
India's private sector is still growing, but it's a bit slower than before.
Factories are doing great, but the service sector is growing less quickly.
Companies are getting more orders from other countries.
However, businesses are worried about rising prices and aren't hiring as many people.
Inflation is going up too, which might mean things cost more in the future.
Even though the economy is still growing, people are a little less confident than they used to be.
India's private sector growth remained strong in July, according to a business survey.
Manufacturing saw the highest growth in over 17 years, while services expansion was softer.
Overall new orders expanded at the fastest pace in a year, fueled by international demand.
Business confidence dropped to its lowest point since March 2023, and employment growth slowed.
Inflationary pressures increased with rising input costs and output charges.
- Who
- The HSBC Flash India Composite Purchasing Managers' Index (PMI) compiled by S&P Global.
- What
- India's private sector showed robust growth in July, as indicated by the HSBC Flash India Composite Purchasing Managers' Index.
- When
- July 2025
- Where
- India
- Why
- The growth was supported by strong manufacturing and international demand, but tempered by inflation and employment concerns.
Concerns
Positive Trends
Job Market
Concerns
Economists express concerns about joblessness and underemployment.
Positive Trends
The economy is growing, showing overall positive trend.
- PMI Reading
- 60.7
- Manufacturing PMI
- 59.2
- Services PMI
- 59.8
- Business Confidence
- Lowest since March 2023
- Unemployment Rate
- 5.6%