India’s private sector growth decelerated in October 2025, reaching its weakest pace in five months as measured by the latest composite Purchasing Managers’ Index (PMI). The HSBC Flash Composite PMI, which tracks the performance of both the services and manufacturing sectors, fell to 59.9 from September’s 61.0. Despite this slowdown, a figure above 50 still indicates expansion, suggesting that while growth momentum has softened, it remains positive for the broader economy.
Data shows that the services sector led the loss of momentum, with its business activity index dropping from 60.9 in September to 58.8 in October—its slowest performance in six months. Analysts attribute this to weaker domestic demand and rising operational costs, prompting firms to maintain caution about the near-term outlook. At the same time, the manufacturing segment provided some relief, with the PMI readings rising to 58.4, hinting at ongoing resilience and strength in producing industries.
Growth in new orders continued, but at the slowest pace since May, signaling more cautious sentiment among consumers and businesses. Export orders also softened, impacted by global headwinds and the imposition of new U.S. tariffs. To manage ongoing cost pressures, many businesses raised selling prices, which may further affect demand if inflation persists.
While India’s private sector remains on a growth trajectory, the October PMI signals a period of moderation. Firms are navigating a climate of weaker demand, heightened price competition, and global uncertainty. Nevertheless, the PMI above 50 confirms ongoing expansion, although at a slower and steadier pace than seen in previous months.
