India’s private sector is ending 2025 on a resilient and positive note. Business activity continues to grow at a strong pace, according to the latest HSBC Flash PMI data. This underscores a year of steady economic expansion.
Healthy domestic demand and a pickup in export orders have provided crucial support. The HSBC Flash India Composite Output Index stood at 58.9 in December. This figure is comfortably above the 50-mark that separates growth from contraction.
While slightly lower than November’s 59.7, it still signals a sharp expansion. The performance marks one of the strongest among major global economies. Activity rose in both manufacturing and services sectors.
The pace of growth did soften marginally during the month. Yet, companies reported that demand conditions remained favourable. New orders stayed firmly in expansion territory, even as growth eased from earlier highs.
A key positive highlight was exports. While overall new order growth moderated, new export orders accelerated. They rose at the fastest pace in three months, a significant boost for the economy.
Firms reported fresh demand from a wide range of global markets. These included Australia, Bangladesh, Canada, and Germany. Orders also came from the Middle East, Sri Lanka, the UK, and the US.
This reflects the improving global footprint of Indian businesses. The diverse sources of demand highlight strengthening international ties. Global demand is clearly providing a substantial lift.
In the manufacturing sector, output and new orders continued to increase. The pace was slower compared with November, however. The HSBC Flash India Manufacturing PMI came in at 55.7 in December, down from 56.6.
Despite this moderation, the reading still points to a solid improvement. Manufacturing conditions remained above the long-term average. The sector continues to show robust health amid global demand shifts.
Employment trends suggested stability across the private sector. Companies largely maintained their existing workforce levels. This indicates current staffing was sufficient to manage incoming orders effectively.
Manufacturing firms added marginally to their staff. Employment in the services sector remained broadly stable. The overall job market appears to be in a steady holding pattern.
Backlogs of work also stayed steady for the third consecutive month. This shows firms are coping well with their current workloads. Efficiency seems to be matching the pace of new business.
The data paints a picture of an economy navigating global currents skillfully. Domestic strength combines with rising international orders. This blend is fueling continued expansion as the year closes.
Global demand is not just a footnote; it’s a driving force. The acceleration in export orders is a testament to that. It provides a optimistic signal for the coming months.
India’s economic story remains one of resilience and growth. The PMI figures confirm the underlying momentum. Businesses are adapting and thriving in a dynamic environment.