India's private sector economy ended the 2024/25 fiscal year on strong footing, sustaining robust expansions in new business intakes and output, according to preliminary HSBC ‘flash’ PMI data.
Rates of growth softened from February, though remained well above their respective long-run averages. Outstanding business volumes continued to rise, supporting another round of job creation, while price trends were mixed.
Input costs rose at a marked and accelerated rate, but charge inflation slowed to its weakest in over three years. Manufacturing was March's brighter spot, posting quicker increases in sales and output that were faster than those registered in the service economy.
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 – was down marginally from February's final reading of 58.8 to 58.6 in March.
The latest figure was above its long-run average of 54.7 and indicated a sharp rate of expansion. The slowdown reflected a softer increase in services activity, as factory production rose at the quickest pace since July 2024.
The HSBC Flash India Manufacturing PMI increased from 56.3 in February to 57.6 in March, signalling a notable improvement in operating conditions that was broadly aligned with the average for the 2024/25 fiscal year. Three of its five main sub-components rose since last month, namely output, new orders and stocks of purchases.