The strong performance was fuelled by a sharper expansion in manufacturing output, though services activity growth remained largely unchanged from last month. The index stood at 58.8 in February 2025.
Robust new orders inflows and overseas demand supported the upturn, prompting firms to add staff.
The index tracks month-on-month changes in combined output across manufacturing and service sectors.
“The manufacturing industry strengthened in February, supported by robust growth in output and new domestic orders,” said Pranjul Bhandari, India chief economist at HSBC. “That said, growth of new export orders slowed.”
“Conversely, services saw a notable acceleration in new export business, while its domestic orders moderated,” she said.
The HSBC Flash India Manufacturing PMI rose to a four-month high of 57.5 in February from 55.4 in January. Meanwhile, HSBC Flash India Services PMI Business Activity Index edged slightly lower to 58.4 from 58.5.Looking ahead, businesses expressed confidence about future activity, expecting investments and marketing efforts to yield results. “Both manufacturers and service providers were optimistic about the future, despite rising inflationary pressures,” Bhandari noted.
New orders increased at the fastest pace since last November, with survey respondents citing strong demand, local tourism, marketing initiatives, and rising client enquiries.
Goods producers reported a stronger rise in total sales, reaching a four-month high, while services growth eased to a 13-month low. “Dampening the upturn was competitive pressures and the offer of cheaper services elsewhere, qualitative data showed,” the survey mentioned.
Export performance diverged between sectors. Services recorded the strongest growth in international orders since August 2025, whereas manufacturers recorded the slowest expansion in external sales in 16 months. At the composite level, February marked the strongest overall expansion since last September.
Employment growth touched a three-month high, with both manufacturing and services firms stepping up hiring, though at modest pace.