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India’s flash PMI indicates strong growth in June

23 Jun 2025 Evaluate

India’s flash PMI indicated strong growth in the month of June, as new export orders continued to fuel private sector business activity, especially in manufacturing. Besides, the combination of robust global demand and rising backlogs prompted manufacturers to increase hiring. Employment growth is also healthy in the services sector despite slightly weakening on a sequential basis from May to June. 

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 -- climbed to a 14-month high of 61.0 in June from a final reading of 59.3 in May. The HSBC Flash India Manufacturing PMI index also rose from 57.6 in May to 58.4 in June, signaling the best improvement in operating conditions since April 2024.

On the inflation front, input and output prices continued to rise for both manufacturing and services firms, but rates of increase showed signs of softening. Moreover, Indian companies remained strongly upbeat towards the year-ahead outlook for business activity. The overall level of positive sentiment slipped to its lowest in just over two years, but was broadly aligned with its trend. At the sector level, there was a mild improvement in confidence at manufacturers and a downgrade in expectations at service providers.


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