India Private Sector PMI Hits Record High 65.2 in August

India's private sector economy experienced its fastest growth on record in August 2025, with the HSBC Flash India Composite PMI Output Index rising sharply to 65.2 from 61.1 in July, marking the strongest momentum since data collection began in 2005. The surge was driven primarily by a sharp rise in new orders, both domestic and export, with robust demand from regions including Asia, the Middle East, Europe, and the US. The services sector led this expansion, reaching a record-high PMI of 65.6, supported by accelerated business activity and employment growth, while the manufacturing sector also strengthened with its PMI hitting the highest level since 2008. Despite rapid growth, inflationary pressures intensified due to higher wage bills and raw material costs, leading companies to raise output charges at the fastest pace in over a decade, enabled by strong demand. Hiring increased for the 27th consecutive month, notably in services, and companies remained optimistic about continued expansion over the next year. This robust economic performance underscores India's growing private sector dynamism amid sustained global and domestic demand.