India’s Private Sector Growth Slows in October; Services Sector Drags Momentum

New Delhi, October 24 – The growth of India’s private sector decelerated in October 2025, recording its slowest rate in 5 months, with weaker momentum from the services sector, according to the Flash India PMI survey from HSBC released on Friday.

Moderation of Overall Growth

The HSBC Flash India Composite Output Index, monitored by S&P Global, decreased to 59.9 in October from 61.0 in September. Nonetheless, it continues to display sustained growth with a value above the neutral 50-point threshold.

The services business activity index dropped to 58.8 from 60.9, and companies cited stiff competition and weather-related shocks as reasons for poor sales.

Manufacturing Sector Performed Well

The manufacturing sector showed continued strength, with the HSBC Flash India Manufacturing PMI Output Index rising to 62.4 in September, up from 61.1 in August, reflecting improved domestic demand and lower GST rates. HSBC’s Chief India Economist, Pranjul Bhandari, said the increase reflects improving cost pressures and a strong demand.

Exports and Jobs Under Pressure

Survey exports and jobs continued to weaken as new orders and exports grew more slowly amid the reinstatement of U.S. tariffs, and employment growth remained weak. Exports and jobs were also weakened, as optimism fell back just before the final PMI number early next month.

Outlook

The private sector in India is forecast to remain on a firm growth path over the next months, support by GST cuts and sustained demand from manufacturing. On the other hand, global trade tensions, weather disruptions, and weak service activity may continue to drag on overall business momentum.

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