Archive · 23 Sep 2026
India Private Sector Growth Hits Three-Month High in September
A survey says Indian businesses grew faster in September than in August.
The overall business activity score rose to 56.5.
A score above 50 means businesses are expanding.
Factories grew especially strongly, and service companies also improved.
Businesses received more orders and sold more goods and services.
They also added workers in both sectors, although one report described the hiring environment as subdued.
Orders from other countries grew more slowly, partly because of tensions in the Middle East.
Companies bought and stored more supplies to prepare for uncertainty.
Overall costs rose more slowly, but manufacturers faced stronger pressure to increase prices.
India’s composite PMI rose to 56.5 in September from 54.3 in August, marking the strongest expansion since June.
Manufacturing PMI climbed to 55.7, a seven-month high, while services PMI increased to 55.8.
Stronger domestic demand lifted output, new orders and sales across manufacturing and services.
Export-order growth slowed to its weakest pace in nearly three years, although manufacturers reported marginally stronger overseas demand.
Middle East tensions encouraged companies to build inventories, while private-sector input-cost inflation eased but manufacturing price pressures increased.
- Who
- Indian manufacturing and services companies surveyed through the HSBC Flash India PMI, compiled by S&P Global; economists Pranjul Bhandari and Miguel Chanco provided comments.
- What
- India’s private-sector business activity accelerated to a three-month high, led by manufacturing and supported by services.
- When
- September, compared with August; the preliminary survey was released on Wednesday.
- Where
- India, with overseas orders affected by tensions in the Middle East.
- Why
- Stronger domestic demand increased output, sales and new orders, while Middle East uncertainty prompted companies to build inventory buffers.
Signs of Stronger Momentum
Continuing Risks and Limitations
Overall business growth
Signs of Stronger Momentum
The PMI showed faster expansion in September, with manufacturing and services both improving and domestic orders strengthening.
Continuing Risks and Limitations
Miguel Chanco said the improvement was not enough to repair the third quarter, which had been weakened by post-Covid lows in July and August.
Employment conditions
Signs of Stronger Momentum
The survey reported solid employment growth in both manufacturing and services as output and new orders increased.
Continuing Risks and Limitations
One report characterized the hiring environment as subdued, despite the survey’s reported increase in aggregate employment.
External demand
Signs of Stronger Momentum
Manufacturers recorded a marginally stronger increase in new work from abroad, with gains reported from Brazil, Europe, the United Arab Emirates and the United States.
Continuing Risks and Limitations
Overall export-order growth slowed to its weakest pace in nearly three years, with slower services growth and Middle East tensions cited as factors.
Cost and price pressures
Signs of Stronger Momentum
Input-cost inflation across the private sector eased to its lowest level since January, helped by softer service-sector cost pressures.
Continuing Risks and Limitations
Manufacturers faced higher input and output-price pressures, indicating efforts to protect profit margins.
- Composite PMI
- 56.5 in September, up from 54.3 in August
- Manufacturing PMI
- 55.7 in September, up from 52.8 in August; a seven-month high
- Services PMI
- 55.8 in September, up from 54.1 in August
- Export orders
- Growth softened to its weakest pace in nearly three years
- Employment
- Employment increased in both manufacturing and services, with broadly similar expansion rates
- Inventories
- The finished-goods stocks index reached an 11-and-a-half-year high
- Business confidence
- Overall optimism about the year-ahead output outlook reached a four-month high
- Inflation
- Private-sector input-cost inflation fell to its lowest since January, while manufacturing output-price inflation accelerated
