- Composite PMI rose to 61.0 in June, the highest in 14 months, signaling robust private sector expansion.
- Record-high export orders and strong domestic demand fueled growth in both manufacturing and services.
- Employment surged, especially in manufacturing, while input cost inflation dropped to a 10-month low.
India’s economy showed remarkable momentum in June as the HSBC Flash India Composite PMI, compiled by S&P Global, soared to 61.0, surpassing forecasts and marking nearly four years of uninterrupted growth.
Contributing significantly to this uptick was the unprecedented rise in export orders, the fastest since record-keeping began in 2014. Driven by favorable global market conditions and India’s competitive production capacity, businesses responded by scaling operations and increasing hiring.
India’s Growth Trajectory Hits High Gear Amid Export Boom and Job Creation
The latest data affirms India’s growing status as a global manufacturing and services hub, with strong external demand complementing steady domestic consumption. Companies across industries ramped up production to meet increased orders, reflecting business confidence and healthy market conditions.
The surge in export business, especially from manufacturing, signals India’s improved integration into global value chains. While service sector exports rose at a slower pace than in May, overall foreign demand remained a key growth pillar. Businesses are also becoming more agile, adapting quickly to evolving international requirements.
On the labor front, the growth story translated into significant employment gains. Manufacturing firms led the hiring wave, buoyed by both demand and operational expansion. Although service sector job creation eased slightly compared to May, it still showed solid momentum.
Meanwhile, easing input cost pressures allowed firms to limit price hikes, enhancing competitiveness without compromising profitability. This also suggests that inflationary risks, while present, may not derail the current growth cycle, giving room for monetary policy flexibility.
India’s private sector is thriving on the back of strong global linkages and internal resilience, setting the stage for sustained economic momentum in the months ahead.
“Opportunities multiply as they are seized.” – Sun Tzu
India’s latest growth wave is a testament to seizing opportunity amid global shifts in demand and supply chains.
