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Business activity in India’s private sector accelerates in January: Flash PMI data
Jan-23-2026

India’s flash Purchasing Managers’ Index (PMI) data report has showed that business activity in the country’s private sector bounced back sharply in January 2026, after losing some momentum at the end of the 2025 calendar year. The HSBC Flash India Composite Output Index - a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors – rose to 59.5 in January 2026 from December’s 11-month low of 57.8, indicated a sharp rate of expansion that was above the long-run series average. The growth is attributed to quicker increases in new orders and output, alongside the reinstatement of job creation and a rebound in business confidence.

The HSBC Flash India Manufacturing PMI - a weighted average of the New Orders, Output, Employment, Suppliers’ Delivery Times and Stocks of Purchases indices - rose from 55.0 in December to 56.8 in January. This signalled the best improvement in operating conditions since last October. January data showed back-to-back increases in outstanding business volumes across the private sector, but the rate of accumulation was marginal and solely driven by an uptick among goods producers. Service providers generally indicated that they were able to complete existing work in a timely manner. Input prices at the composite level rose at the quickest pace in four months during January, albeit one that was modest by historical standards. Underlying data showed that cost pressures were more pronounced in the service economy.

The report noted that at the same time, rates of output price inflation across the manufacturing and services categories matched. When combined, they showed the fastest increase in private sector charges for three months. That said, the respective seasonally adjusted index was equal to its long-run average. When assessing the 12-month outlook for business activity, Indian private sector companies were optimistic. The overall level of positive sentiment remained below its long-run average, but rose to a three-month high. It said boding well for growth prospects, were efficiency gains and demand buoyancy. Allocated marketing budgets and favourable exchange rates were also identified as tailwinds.

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