India’s business activity rises to 7-month high in February

The HSBC Flash India Composite PMI Output Index, which is a seasonally adjusted index that measures the month-on-month change in the output of India's manufacturing and service sectors – rose to 61.5 in February from 61.2 in January 2024.

The flash composite PMI figure – based on a survey of managers – for India has been published for the first time in February. The survey is considered as an advance estimate for final PMI numbers.

The survey highlighted that India’s economic growth continued to strengthen this month. It observed that survey participants attributed the upturn to buoyant demand conditions, investment in technology, efficiency gains, expanded clientele and favourable sales developments. Experts point out that new export orders also rose sharply in this month, especially for goods producers.

At the same time, there was moderation in cost pressures across India. According to the survey findings, aggregate input prices rose only slightly, and at the weakest pace in three-and-a-half years. This is why a smaller portion of businesses hiked selling prices.

More importantly, “the overall level of business confidence slipped from January's four-month high, but remained indicative of a robust degree of optimism towards growth prospects,” said the survey.