New Delhi: India’s private sector maintained solid expansion in March, even as the HSBC Flash India Composite Output Index—which tracks manufacturing and services sector output—declined slightly from 58.8 in February to 58.6. This minor dip was attributed to a slower rise in services activity, while factory production surged, marking its strongest growth in eight months.

India’s private sector continued its strong growth momentum in March, with the HSBC Flash India Composite Output Index registering a marginal decline from 58.8 in February to 58.6. Despite the slight dip, business activity remained well above long-term trends, driven by robust manufacturing output, which saw its fastest growth since July 2024.

The HSBC Flash India Manufacturing PMI climbed from 56.3 in February to 57.6 in March, reflecting improved operating conditions. Among the five key components of the index—output, new orders, employment, suppliers’ delivery times, and stocks of purchases—three saw month-on-month growth.

HSBC’s Chief India Economist Pranjul Bhandari noted that while manufacturing gained momentum, rising input costs pressured margins, as factory gate prices grew at their slowest rate in a year. Additionally, new export orders moderated amid global tariff concerns.

Key trends from the HSBC PMI report:

  • Manufacturing growth outpaced services, with sales and production rising faster.
  • New business orders and outstanding workloads increased, prompting further job creation.
  • Input costs surged, but output price inflation eased to its lowest level in over three years.
  • Overall, the private sector ended the 2024/25 fiscal year on a strong note, with growth trends suggesting continued economic resilience.

With India’s manufacturing sector leading the expansion, the country’s economic outlook remains optimistic, despite external challenges such as global trade disruptions and inflationary pressures.