Private sector exercise eases to five-month low in October, PMI reveals

Growth in India’s non-public sector eased to a five-month low in October as weaker demand and rising output costs weighed on enterprise optimism, a survey confirmed on Friday (October 24, 2025).

HSBC’s flash India Composite Purchasing Managers’ Index (PMI), compiled by S&P Global, fell to 59.9 this month from a last studying of 61.0 in September and beneath a Reuters ballot median forecast of 61.2.

Despite slipping to the bottom since May, progress remained sturdy and nicely above the 50-mark separating growth from contraction.

The general index — a seasonally adjusted index measuring the month-on-month change within the mixed output of India’s manufacturing and repair sectors — was primarily dragged down by a slowdown in companies progress whilst manufacturing exercise recovered from a four-month low in September.

The flash manufacturing PMI rose to 58.4 from 57.7 final month whereas the companies enterprise exercise index slipped to 58.8 from 60.9.

An general new orders sub-index expanded firmly although at its weakest tempo since May. The softer enhance stemmed from a lack of progress momentum within the companies sector, nevertheless, items producers noticed a barely faster rise than in September.

International demand for Indian items and companies softened to its weakest in seven months, largely as a consequence of a slower enhance in manufacturing exports.

India is going through steep tariffs on its exports to the United States, with President Trump reiterating tariffs will stay excessive except New Delhi stops its purchases of Russian oil.

A month-to-month bulletin launched by the Reserve Bank of India on Monday famous merchandise commerce remained resilient general however highlighted a pointy decline in exports to the U.S. in September as the upper tariffs kicked in.

Cost stress eased throughout each sectors, helped by a decreasing of the products and companies tax (GST) in September. However, corporations avoided passing these advantages on to prospects and promoting fees have been raised to offset increased operational prices.

For the year-ahead enterprise optimism waned exhibiting issues over rising aggressive pressures, market circumstances and demand developments.