INDIA'S PRIVATE SECTOR ECONOMY GAINS GROWTH MOMENTUM AT START OF 2024

HSBC: Sharp January uptick in India's private sector with strong output growth and increased hiring

- NIVEDITA MUKHERJEE

The health of the Indian private sector economy improved substantially in January, as a sharper upturn in new work intakes fuelled output growth and operating capacities remained under pressure, encouraging firms to hire additional workers, the HSBC Flash India PMI data showed on Wednesday. The Flash India Composite PMI 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 at 61.0 in January, inside expansion territory for the thirtieth successive month.

T Rising from 58.5 in December, the latest figure pointed to the sharpest rate of growth since September 2023. The inaugural flash results also highlighted an intensification of cost pressures, but selling prices were raised to a smaller extent. Pranjul Bhandari, Chief India Economist at HSBC notes that the economy grew at a faster pace in January, led by stronger manufacturing output, as well as more robust business services activity. "New orders rose at a faster pace than a month ago, and within that, international orders were stronger than before.