India’s PMI has reached its highest level in three months in February. According to data shared in the S&P report, HSBC Flash India PMI data rose to a three-month high of 59.3 in February from 58.4 in January. It was told in the data that the reason for the sharp increase in PMI is the increase in factory production. However, growth in services activity remained the same as in January. “The manufacturing industry strengthened in February, supported by strong output growth and new domestic orders,” said Pranjul Bhandari, chief economist for India at HSBC. At the overall level, growth in February was the strongest since last September. Bhandari further said, ‘Despite rising inflation, both manufacturers and service providers were optimistic about the future.’ Private sector companies in India welcomed a sharp increase in total new orders and international sales during February, which encouraged them to hire additional employees and increase production. Additionally, there was increased optimism among businesses about growth prospects. These improvements were accompanied by rising inflationary pressures, which led to a sharp rise in both input costs and selling charges, the report said. The report further said that similar to the trend in output, total new orders increased at the fastest pace since last November. Survey participants attributed the growth to strength in demand, local tourism, marketing efforts and increased customer inquiries. Producers of goods posted stronger growth in total sales than service companies, and the growth was the fastest in the past four months. At the same time, growth of services companies fell to a 13-month low. Qualitative data showed that competitive pressures and the availability of cheaper services elsewhere slowed this pace. ‘The services economy outperformed exports as international orders recorded the fastest growth since August 2025,’ the data showed. In addition to hiring additional employees, goods producers also increased purchasing volumes. Growth in input purchases reached a four-month high in February. According to the data, suppliers were able to supply materials on time, and vendors’ improved performance has continued for two years. The report said this helped companies increase the stock of raw materials and semi-finished goods.
