Mumbai: India’s private sector growth touched 6-month high in February. The HSBC’s flash India Composite Purchasing Managers’ Index (PMI) compiled by S&P Global revealed this.
Composite PMI output rose to 60.6 in February, up from 57.7 in January. The PMI, where a reading above 50 signifies expansion, showed substantial improvement, primarily driven by the services sector.
The services sector’s index rose to 61.1 in February, the highest since March of the previous year. This marks an increase from 56.5 in January. This strong performance counterbalanced a slight decline in the manufacturing PMI, which dipped to 57.1 from 57.7.
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‘Rapid restocking around the world continues to lift new export orders. A healthy acceleration in orders and output is keeping firms optimistic about the future. Input prices eased while output prices rose at a faster pace, leading to improved margins, especially for goods producers,’ said Pranjul Bhandari, chief India economist at HSBC.
After the GDP rose by 5.4% in July-September on a year-on-year basis, the lowest in seven quarters, the growth has been estimated at 6.4% in FY25. The Reserve Bank of India’s internal models, based on high-frequency data, suggest the economic growth improving to 6.6% in the January-March quarter this year.
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