India’s private sector economy recorded an unprecedented expansion in August 2025, with the HSBC Flash India Composite Purchasing Managers Index (PMI) Output Index jumping to 65.2 from 61.1 in July, marking the fastest growth since the survey began in December 2005, according to Standard & Poor’s (S&P) Global.

The services sector led the surge, with the HSBC Flash India Services PMI Business Activity Index reaching a survey high of 65.6, driven by robust new business orders from both domestic and export markets. The manufacturing sector also witnessed strong growth, as the Manufacturing PMI rose to 59.8 from 59.1, reflecting the fastest improvement in factory operating conditions since January 2008.

Margins improved as output prices increased at a faster rate than input costs, showcasing strong pricing power amid heightened demand. Demand conditions strengthened across all sectors, with export orders from Asia, the Middle East, Europe, and the United States (US) growing at the fastest pace since the start of composite data collection in 2014.

The employment index continued its upward trend, rising for the 27th consecutive month, largely driven by the services sector. Meanwhile, backlogs of work expanded only slightly, marking the slowest pace since May 2025. Input costs rose due to higher wages and elevated raw material prices, while output charges increased at the sharpest rate in over 12 years, underlining strong demand and pricing power.

Optimism among private sector firms reached the highest level since March, reflecting expectations of sustained robust demand in the coming year. Analysts highlighted that the surge in both services and manufacturing underscores India’s resilient economic growth, strong domestic consumption, and expanding global trade footprint, positioning the country as a key driver of Asia-Pacific economic expansion.

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The Current active IPO are ARC Insulation & Insulators, Mangal Electrical Industries, LGT Business Connextions, Vikram Solar, Gem Aromatics, Shreeji Shipping Global, Patel Retail.

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