HSBC Flash India PMI: The HSBC Flash India Composite Output Index, an index of the combined performance of India’s manufacturing and services sectors, has registered a decline in the month of December. In the month of December it has come down to 58.9, whereas in November this figure was 59.7.

Flash PMI data has been released by S&P Global on Tuesday, December 16. According to the information received from the report, there has been a decline in business activities of both manufacturing and services sectors.

What does the data say?

Flash PMI data from S&P Global shows that India’s manufacturing and services sectors still remain strong and the index is well above the neutral level. However, a decline has definitely been registered in it. Which shows the slow pace of both the sectors. A figure above 50 shows strength or economic expansion.

At the same time, a level below 50 shows a decline and a level of 50 does not show any change. The country’s PMI data is at 58.9. According to a report published in Business Standard, HSBC Flash India PMI has ended positive in the year 2025. There has been a decline in the month of December due to slow pace of output and new orders.

The pace of manufacturing was the slowest in two years

The manufacturing sector has seen the weakest growth compared to the last two years. The pace of output and new orders remained slow in the month of December. Due to which the index has come down to 55.7. Which indicates slow improvement in the sector.

However, companies are hopeful that their growth may increase with new orders next year. Despite this decline in PMI, companies are expecting growth in business. However, business confidence has declined for the third consecutive month in December.

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India manufacturing PMi: The activities of the country’s private manufacturing sector have fallen down in the month of September. According to the data, it is at the lowest level in the last 4 months. According to the report released by HSBC Purchasing Manager Index (PMI), this figure has come down from 59.3 to 57.7 in September. Which shows that the manufacturing sector of India is growing, but its speed is slow. America’s tariff policy has had a direct impact on this. The pace of new Ordus, output and input shopping slowed down and it affected the manufacturing sector. The biggest thing is that in the survey, shocking talk has been said about new employment generation. According to the survey, this year it was the lowest in it. Which directly means that there will be no new employment opportunities in the market.

What is the Pacing Manager Index Index (PMI)?

The Purchasing Manager Index reports on a monthly basis on the activities of the country’s manufacturing sector. If its figures are above 50, it reflects expansion and growth in the manufacturing sector. The figure below 50 works to show lethargy in the sector. If this figure remains 50, then there is no change compared to the previous months. It was 57.7 in September, which means that there is an expansion in the manufacturing sector. However, due to the fall of the figures compared to the previous months, its pace has definitely slowed down.

GST reform and improvement from international order

The prices of things have come down since the government’s GST reform. Due to which the demand is likely to increase. The growth of manufacturing sector is expected to continue due to increasing demand. Pranjul Bhandari, Chief India Economist of HSBC, believes that “the September headline index is soft, although it has been average above for a long time. Also in September, the speed of new export orders has also increased rapidly. Which is indicating that demand from Asia, Europe and Middle East may reduce dependence on America and the situation may be balanced.”

However, some Indian companies have shown enthusiasm about production in the next 12 months. He is completely confident after GST tax improvement. Along with this, some companies have also recruited all companies for production. Although this figure is very low. Only 2 percent of companies have appointed new employees.

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India’s manufacturing sector growth: This is good news for India on the domestic front of global uncertainty. In the month of April, the growth rate in India’s manufacturing sector has reached the highest level in the last 10 months. This is the highest increase in production after last year i.e. June 2024. During a monthly survey, its information was given on Friday.

In April, the seasonally adjusted ‘HSBC India Manufacturing Purchase Manager Index’ (PMI) increased to 58.2, which was 58.1 in March a month earlier. If the score under PMI remains above 50, then it is believed that the production has expanded, while the production is considered to decline if it remains below it.

Increased production

The recent improvement in production was seen due to the increase in new audience. Both domestic and international demands have helped in the growth of manufacturing sector. If the survey is to be believed, then the total sales have increased due to the increase in international demands. In response to the questions asked in this survey, the participants said that the highest increase in the new business from abroad has been seen in the beginning of 2025-26 in the last 14 years.

HSBC Chief Economist Pranjul Bhandari says that the new export order has seen growth in the month of April which is pointing to a change in production in India. This has increased employment and purchases. At the same time, strong demand for Indian goods abroad has helped companies pricate on the price front, which increased the selling fee significantly after October 2013.

Record high in 10 months

This was despite a slight increase in the cost of raw materials. The April figures were clear about strong optimism about the possibility of production in the coming year, which was inspired by the expectations of strengthening demand. Marketing efforts, increase in efficiency and new customer inquiries also emphasized positive forecasts. HSBC India Manufacturing PMI has been prepared by S&P Global on the basis of answers to questions sent to purchasing managers in a group of about 400 manufacturers.

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