India's Jan business growth at 14-month low on weaker services demand

India's business activity grew at the slowest pace in over a year in January, a survey showed, highlighting emerging cracks in its world-beating economic growth at the start of 2025 although firms hired new staff at a record pace.

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The services industry is the major engine of Asia's third-largest economy and the latest data raises concerns about the sustainability of a strong economic performance with government estimates pointing to slower overall growth of 6.4% this fiscal year.

HSBC's flash India Composite Purchasing Managers' Index (INPMCF-ECI), compiled by S&P Global, fell to 57.9 in January, the lowest reading since November 2023, from December's final reading of 59.2.

Still, the index has been above the 50-mark separating expansion from contraction for three-and-a-half years, the longest continuous growth streak since mid-2013.