September 3, 2025
The HSBC India Manufacturing Purchasing Managers' Index (PMI) rose to 59.3 in August, up from 59.1 in July
India's GDP grew by 7.8% in Q1FY26, the fastest pace in five quarters
The RBI expects GDP growth to remain at 6.5% in FY26, supported by rural demand, public investment, and resilient services exports
While aggregate employment rose at a solid pace, growth in the services sector was more pronounced
India’s service activity raced to a 15-year high of 62.9 in August, from 60.5 in July, as robust demand spurred a rush of new orders, according to a private survey released on September 4.
Manufacturing activity also gained momentum. The HSBC India Manufacturing Purchasing Managers’ Index (PMI) rose to 59.3 in August, up from 59.1 in July, supported by solid gains in output and new orders. The services sector, which accounts for over half of India’s GDP, has been a key driver of the country’s recent economic expansion. India’s GDP grew by 7.8% in Q1FY26, the fastest pace in five quarters. This follows a 6.5% expansion in FY25, and a 9.2% expansion in FY24, which was ahead of the Reserve Bank of India’s (RBI) projection.
The RBI expects GDP growth to remain at 6.5% in FY26, supported by rural demand, public investment, and resilient services exports.
The survey noted that the composite index’s acceleration was supported by new business intakes, which reached their highest rate since mid-2010. While aggregate employment rose at a solid pace, growth in the services sector was more pronounced.
Source: Mint