India’s private sector growth took a slight hit in March 2025 as the HSBC Flash India Composite Purchasing Managers’ Index (PMI) fell to 58.6 from 58.8 in February. This drop was primarily due to a slowdown in the service sector, while manufacturing showed positive momentum.
Despite the slight dip in overall PMI, India’s manufacturing sector remained resilient, with the Manufacturing PMI rising to 57.6, up from 56.3 in February. This marks its highest level since July 2024, driven by stronger production and new orders.
In contrast, the Services PMI dropped to 57.7 from 59.0, reflecting slower demand and reduced new business growth. This suggests that service providers are facing difficulties in attracting new customers, possibly due to economic uncertainty.
Another key concern is weakening international demand. New export orders grew at the slowest pace in three months, indicating global trade challenges and possible impacts from recent tariff changes.
Despite these hurdles, India’s private sector economy is still expanding, as the PMI index has remained above 50 for over three years. This indicates continued growth, though at a slightly slower pace.
India’s economy ended the fiscal year on a positive note, but the service sector slowdown is something to watch in the coming months. With strong manufacturing output, the overall economic outlook remains optimistic.
