Updated: Jun 23, 2025 02:45:32pm
India’s Private Sector PMI At 14-Month High At 61 In June Marks Growth Expectations
New Delhi, Jun 23 (KNN) India’s private sector demonstrated robust growth in June, with companies significantly expanding production to address rising domestic and international demand.
The acceleration marked a continuation of the country’s sustained economic expansion, according to survey data released Monday.
The HSBC Flash India Composite Purchasing Managers’ Index (PMI), compiled by S&P Global, rose to 61.0 in June from 59.3 in May, reaching its highest level in 14 months.
The index reading well above the 50-point threshold that separates growth from contraction indicates the private sector has maintained expansion for nearly four consecutive years.
Both manufacturing and services sectors contributed to the overall growth momentum. The services activity index increased to 60.7 from May’s 58.8, representing the strongest performance since August of the previous year.
Manufacturing activity also gained pace, with its PMI advancing to 58.4 in June from 57.6 in the prior month, supported by strong output levels.
Export performance reached unprecedented levels during the month. New export orders across all sectors achieved their highest reading since data collection began in September 2014.
Manufacturing companies particularly benefited from international demand, though service providers experienced a deceleration in export business growth compared to the previous month.
The surge in demand prompted companies to expand their workforce significantly.
Manufacturing employment growth reached levels not witnessed since the survey series commenced more than two decades ago. Service sector firms also continued recruiting, though at a slower pace than recorded in May.
According to Pranjul Bhandari, Chief India Economist, HSBC, the combination of strong global demand and increasing order backlogs drove manufacturers to accelerate hiring.
Inflationary pressures showed signs of moderation during June. Input cost inflation softened to a 10-month low, enabling companies to exercise restraint in price increases to maintain competitiveness. Consequently, output price growth decelerated from May’s six-month peak.
This development follows recent inflation data indicating consumer price pressures eased to their lowest level in over six years during May.
The moderation in inflation provides the Reserve Bank of India with greater flexibility to support economic growth through potential interest rate reductions, particularly amid growing uncertainties related to U.S. trade policies.
Despite the positive operational metrics, business sentiment reflected some caution. Overall business confidence declined to its lowest point in just over two years.
While manufacturers expressed marginally improved optimism about future prospects, service providers adopted a more conservative outlook for the year ahead.
(KNN Bureau)