India's economic activity expands in July, services PMI rises to 61.1

India's economic activity saw a robust expansion in July, driven by a rise in services and a slight uptick in manufacturing, according to a flash survey by HSBC Holdings Plc. The services purchasing managers’ index (PMI) climbed to 61.1 from 60.5 in June, while the manufacturing PMI rose marginally to 58.5 from 58.3. This pushed the composite PMI to a three-month high of 61.4 from 60.9 in June 2024. Based on the preliminary survey results, these indexes reflect business confidence, with readings above 50 indicating expansion.

Chief India economist at HSBC, Ms. Pranjul Bhandari, stated that the rise in output was led by increased business activity in manufacturing, with services also accelerating above their long-run average. India, the fastest-growing major economy, posted over 8% growth in the past fiscal year. The central bank forecasts a 7.2% expansion this year, while the government projects 6.5%-7% growth through March 2025. In July, HSBC reported a sharp increase in new orders placed with private sector firms, leading to a strong expansion in the aggregate employment index, particularly in manufacturing.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.