Global demand rises as India export orders hit 3-month high: HSBC Flash PMI

New Delhi: India’s private sector closed 2025 on a positive and resilient note, with business activity continuing to grow at a strong pace, according to the HSBC Flash India PMI for December on Tuesday.

The data underlined a year of steady expansion for the economy, supported by healthy domestic demand and a pickup in export orders.

The HSBC Flash India Composite Output Index stood at 58.9 in December, comfortably above the 50-mark that separates growth from contraction.

While this was slightly lower than November’s reading of 59.7, it still indicated a sharp expansion in overall business activity across manufacturing and services, marking one of the strongest performances among major economies.

Business activity continued to rise in both manufacturing and services during the month, although the pace of growth softened marginally.

Companies reported that demand conditions remained favourable, helping new orders stay 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 in December and rose at the fastest pace in three months.

Firms reported fresh demand from a wide range of global markets, including Australia, Bangladesh, Canada, Germany, the Middle East, Sri Lanka, the UK and the US, reflecting the improving global footprint of Indian businesses.

In the manufacturing sector, output and new orders continued to increase, though at a slower pace compared with November.

The HSBC Flash India Manufacturing PMI came in at 55.7 in December, down from 56.6 in the previous month.

Despite the moderation, the reading still pointed to a solid improvement in manufacturing conditions and remained above the long-term average.

Employment trends suggested stability across the private sector. Companies largely maintained their existing workforce levels, indicating that current staffing was sufficient to manage incoming orders.

Manufacturing firms added marginally to their staff, while employment in services remained broadly stable.

Backlogs of work also stayed steady for the third consecutive month, showing that firms were coping well with workloads.

IANS