Operating conditions across India’s private sector continued to improve in July, with the latest HSBC ‘flash’ PMI data showing sharp expansions in total sales, export orders and output levels, S&P Global said on Thursday. India’s flash composite PMI remained healthy in July at 60.7, according to the HSBC Flash India PMI, compiled by S&P Global.

“The strong performance was bolstered by growth in total sales, export orders, and output levels. Indian manufacturers led the way, recording faster rates of expansion than services. Meanwhile, inflationary pressures continue to heat up as both input costs and output charges rose in July,” pointed out Pranjul Bhandari, chief India economist at HSBC.

At 60.7 in July, the HSBC Flash India Composite Output Index (a seasonally adjusted index that measures the month-on-month change in the combined output of India’s manufacturing and service sectors) was little-changed from June’s final print of 61.0, and therefore signalled another substantial rate of growth. Moreover, the headline figure remained well above its long-run average of 54.8.

Goods producers registered a faster increase in output than service providers, as the pace of expansion picked up to the strongest since April 2024. There was a softer upturn in services activity during July, though growth remained sharp by historical standards.

The HSBC Flash India Manufacturing PMI (a weighted average of the new orders, output, employment, suppliers’ delivery times and stocks of purchases indices) rose from 58.4 in June to 59.2 in July, its highest reading in close to 17-and-a-half years and indicative of a robust improvement in the health of the manufacturing industry.