In July 2025, India’s manufacturing sector showed very strong growth, with the HSBC Flash India Manufacturing PMI reaching 59.2—the highest level in nearly 17 and a half years. This means factories are doing really well, helped by strong demand both inside India and from abroad.

The overall business activity, which includes both manufacturing and services, also grew fast, with the Composite PMI hitting 60.7, the quickest growth rate in over a year. Companies are seeing more sales, export orders, and production.

Jobs are also picking up, especially in services, showing healthy employment growth. Manufacturers are feeling optimistic about expanding in the next year, thanks to good demand, investments in technology, and increasing their production capacity.

That said, prices are rising for both raw materials and finished goods. Business confidence has dipped to its lowest in over two years because some companies worry about competition and inflation. Job creation has also slowed to the weakest in 15 months.

India’s private sector, especially manufacturing, is growing strongly with more orders, sales, and production, but rising costs and cautious business feelings remain concerns.