India’s private sector economy posted its sharpest expansion in August 2025, recording an all-time high of 65.2 from 61.1 in July, 2025, the HSBC Flash India PMI, compiled by S&P Global revealed on Thursday.

The rapid upturn in business activity was driven by a surge in sales volumes, with total new order intakes rising at one of the quickest rates on record. The country’s business activity posted its sharpest expansion since the survey data were first collected in December 2005.

“The Services flash PMI touched an all-time high of 65.6, led by a sharp pick up in new business orders, both export and domestic. The Manufacturing flash PMI rose further, inching closer to the 60-mark, led by a smart rise in new domestic orders. Growth of new export orders, however, remained unchanged at July’s levels. Margins improved as the rise in output prices was much faster than that for input costs,” Pranjul Bhandari, Chief India Economist at HSBC, said.

The seasonally adjusted HSBC Flash India Composite Output Index rose by over four points in August, signalling a rapid expansion in private sector business activity that was the quickest on record. Hiring picked up, with jobs growth accelerating, while firms also registered their most optimistic assessment of the year-ahead outlook since March. 

Meanwhile, the HSBC Flash India Manufacturing PMI–a weighted average of the New Orders, Output, Employment, Suppliers’ Delivery Times and Stocks of Purchases indices – ticked up to 59.8 in August (59.1 in July), indicating a faster improvement in factory operating conditions across India.