India’s Private Sector Activity Hits Four-Month High in October 2026

Business picked up across India’s private sector in October, with companies seeing stronger demand and higher output, as per news reports. The latest HSBC survey points to the fastest pace of growth in four months. 

The HSBC Flash India Composite Output Index rose to 56.7 from 55.9. Manufacturing lost a little momentum, but services activity improved. 

Services Pick Up as Export Orders Grow 

The Services Business Activity Index climbed to 56.2 from 55.2, while the Manufacturing PMI edged down to 54.9 from 55.1. Both remained above the 50 mark that separates growth from contraction. 

Businesses also reported a faster rise in new orders. Overseas demand was a notable contributor, with export orders increasing at their quickest pace since June 2025. Companies reported stronger demand from markets including the UtS, UK, West Asia and Bangladesh. 

Companies Stay Cautious on Hiring 

The stronger business numbers have yet to bring a meaningful lift in employment. Hiring increased only slightly and at its slowest pace so far this year. Service firms left staffing levels unchanged, while manufacturers added a limited number of workers. 

Backlogs of work also fell for the third time in four months, suggesting firms were making progress on pending jobs. 

Cost Pressures Continue to Ease 

There was better news on inflation. Input cost growth slowed for the seventh month in a row, reaching its lowest level in almost a year. Selling prices also rose at their slowest pace since March 2025. 

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Conclusion 

October brought stronger demand and a better showing from services, while manufacturing growth eased slightly. With hiring still subdued, the survey presents a mixed picture beneath the headline improvement in activity. 

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