HSBC Flash India PMI rises to 59.3, a three-month high.
New orders grow fastest since November, led by manufacturing.
Services see strongest export surge since August 2025.
Job creation hits three-month peak despite rising input costs.
India’s private sector recorded faster growth in February, supported by quicker increases in new orders and stronger hiring, according to the HSBC Flash India PMI release compiled by S&P Global.
The HSBC Flash India Composite Output Index rose to 59.3 in February from 58.4 in January, indicating the fastest expansion in three months. The pick-up was led by manufacturing, where output growth strengthened, while activity in services remained broadly stable.
3 February 2026
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Overall, new orders increased at the quickest pace since November. Firms attributed the rise to stronger demand, domestic tourism, marketing activity and higher client enquiries.
"The manufacturing industry strengthened in February, supported by robust growth in output and new domestic orders. That said, growth of new export orders slowed. Conversely, services saw a notable acceleration in new export business, while its domestic orders moderated," said Pranjul Bhandari, Chief India Economist at HSBC.
The service economy outperformed in exports, as international orders rose at a substantial pace that was the steepest since August 2025. Conversely, manufacturers observed the slowest increase in external sales for 16 months. At the composite level, February's expansion was the strongest since last September.
Both sectors added staff, with the rate of job creation reaching a three-month high. Outstanding workloads increased for the third month in a row, marking the fastest rise since July 2025, although the build-up was slight.
Manufacturers also boosted input buying, and suppliers continued to deliver materials on time. Stocks of raw materials and semi-finished goods increased.
Input costs rose at the fastest pace in 15 months, driven by higher prices for chemicals, freight, labour, machinery, metals, packaging and some food items such as meat and vegetables. Companies raised selling prices at a faster pace, with service providers reporting the steepest increase in two-and-a-half years.
"Both manufacturers and service providers were optimistic about the future, despite rising inflationary pressures," Bhandari added.
