Archive · 22 May 2025
India's Business Activity Surges to 13-Month High in May
India's economy saw strong growth in May!
A survey called the HSBC Flash India Composite PMI showed that businesses were very active, the most in over a year, with the index at 61.2.
This means companies are producing more goods and services.
The service sector, like businesses that offer services to other businesses or people, led the way with its highest growth in 14 months.
Manufacturing is still growing but not as quickly.
Also, companies are hiring more people.
The HSBC Flash India Composite PMI reached a 13-month high of 61.2 in May.
Private sector activity accelerated during May, driven by the service economy.
Service providers reported the fastest rise in output in 14 months.
Manufacturing output increase was the slowest in three months.
Employment continued to increase, hitting a new series record since December 2005.
- Who
- HSBC
- What
- Increase in business activity indicated by HSBC Flash India Composite PMI
- When
- May 2025 (report published May 22, 2025)
- Where
- India
- Why
- To assess India's economic performance in May 2025
Manufacturing Growth Cooling
Service Sector Expansion
Sector Performance
Manufacturing Growth Cooling
Manufacturing output increased at the slowest rate in three months.
Service Sector Expansion
Service providers reported the fastest rise in output in 14 months.
- Composite PMI (May)
- 61.2 (13-month high)
- Manufacturing PMI (May)
- 58.3
- Service PMI (May)
- Fastest rise in 14 months
- Employment
- Continued to increase, hitting a record high since December 2005
Sources
Industry hopeful of RBI rate cut "very soon"; expects over 6.5pc GDP growth in FY26: PHDCCI
India's GDP growth in Q4 FY25 to remain robust around 6.4-6.5 pc: SBI report
Morgan Stanley upgrades India's growth at 6.2 pc for FY26 and 6.5 pc for FY27
Morgan Stanley raises India's growth outlook for FY26, FY27 on rising capex, domestic demand
Booming services fire up India business growth in May despite rising inflation, PMI shows
Fitch raises India's average growth potential to 6.4% till 2028
