India’s Flash PMI Increased to 59.5 in January; Private Sector Records Improvement

India’s PMI increased, signalling significant growth in the Indian private sector in January 2026. According to S&P Global's report, the HSBC Flash India Composite Output Index jumped to 59.5 in January 2026. The report, dated January 23, 2026, revealed that this is a significant growth in the manufacturing and service sectors of India when compared to 57.8 in December 2025. Manufacturing firms showed quicker sales than the service sector. The Manufacturing Flash India PMI increased from 55.0 in December to 56.8 in January.

The major reason is the increase in the demands of the customers, optimum spending on marketing, and increased input costs. The S&P Global reports revealed that the growth of the output index of manufacturing and service centres was mainly slow. The recent increase has boosted the confidence and optimism of the private companies. 

As per Business Standard, Chief India Economist at HSBC, Pranjul Bhandari said, "Growth, as signalled by the HSBC flash PMI, picked up pace for both manufacturing and services.’ However, she also added, “Despite the rise in the manufacturing PMI, January’s figure remained below the 2025 average. After losing some momentum at the end of 2025, new orders rose more rapidly – led by a faster pick up in domestic orders. Input cost pressures rose quickly, though more for goods producers than for service providers."

Increase in Overseas Demand

According to the S&P Global Report, the private sector of India gained a lot from the increase in overseas demand. In January, the international orders saw a fresh rise, indicating the strongest export rate of India. The country mainly received orders from Asia, Australia, Europe, Latin America, and the Middle East. The overseas orders have benefited the overall business economy of India. 

Hiring of Employees Increased

The private companies have increased their hiring capacity to meet the market and business needs, and input purchase demands. Although the rise was small, it was within the long-term sustainable target. 

The companies have mainly hired junior- and mid-level employees to increase their workforce according to the increased sales and demands. 

As per the report, the manufacturing companies not only hired employees and expanded their workforce, but also increased their investment in raw materials. This growth is reflected in the HSBC Flash India Manufacturing PMI, which increased from 55.0 in December to 56.8 in January. The increment reflects the increase in purchasing and the overall growth of the sector, marking the best improvement since October. 

Increased Input Purchase, Balanced Cost Inflation

The report suggests that the increased PMI reflected an increase in the input cost of the companies. As they are investing in a purchase, the cost of input naturally increases. The companies delegated the input cost to the customers, which included the price of eggs, meat, vegetables, fuel, steel, labour and transport. 

However, the cost inflation remained balanced. This suggests that despite the growth in operating and an increase in input costs, the companies kept the price pressure under control.