India's private sector activity strengthened significantly in September, with the HSBC Flash India Composite PMI rising to 56.5 from 54.3 in August, marking the strongest expansion in private sector activity since June, according to the latest HSBC Flash India PMI released on Wednesday. The Manufacturing PMI improved to 55.7 in September from 52.8 in August, representing the strongest improvement in manufacturing operating conditions in seven months. The Manufacturing PMI Output Index climbed to 58.2 from 54.8, while the Services PMI Business Activity Index increased to 55.8 from 54.1. New business expanded at a faster pace during the month, with demand strengthening in both manufacturing and services, though the acceleration was stronger among goods producers where sales growth hit a seven-month high. As per S&P Global, firms across India's private sector recorded a faster increase in total new business during September as demand improved across both monitored sectors, with manufacturers showing greater improvement. According to Zee News, the latest print was consistent with a sharper expansion in private sector activity and one that was the most pronounced since June, with the respective index back above its long-run average.
The August infrastructure output data will be released on September 21, according to reports from Business Standard. Output growth across India's nine key infrastructure sectors rose to 5.4% in July, up from 3.2% in the same month last year but slower than the 6% growth recorded in June 2026. The increase was supported by higher production of coal, refinery products, cement, electricity and iron ore. The core sector data has been released under a new base year of 2022-23 since June, replacing the earlier 2011-12 base, with the government adding iron ore to the index. During April-July 2026-27, output across the key sectors grew 4.3%, compared with 1.5% in the same period a year earlier.
Employment rose solidly in September as companies continued to add staff amid sustained growth in output and new orders, with job creation recorded across both manufacturing and services at broadly similar rates. Inflationary pressures eased at the broader private-sector level, with input cost inflation slowing to its lowest level since January as softer cost pressures in services more than offset a pick-up among manufacturers. Selling price inflation was broadly unchanged overall, although factory-gate price increases accelerated while services firms raised charges at a slower pace. The rate of input cost inflation across the private sector eased to its lowest level since January, with firms attributing increased cost burdens to greater outlays on electrical components, foodstuff, fuel, metals, pharmaceutical ingredients and technology resources. According to Zee News, input purchases picked up pace, and the stocks of finished goods index is now at an 11-and-a-half-year high. Business confidence also improved, with optimism about output over the coming year rising to a four-month high across the private sector.
Marketing efforts boosted order intakes among service providers, with demand rising for property, transport, travel, software and digital solutions, according to S&P Global. Goods producers reported stronger demand for aluminium, electronics, food, pharmaceuticals and new product models. However, new export orders continued to rise but the rate of expansion fell to the slowest in nearly three years. The flash PMI provides an early indication of the final manufacturing, services and composite PMI readings and is based on around 90 per cent of monthly survey responses. Final PMI data for manufacturing will be released on October 1 and for services on October 6. According to Zee News, service providers indicated that marketing efforts helped boost order intakes, with mentions of stronger demand for properties, transport services and new travel bookings featuring in the qualitative part of the survey.
The Ministry of Finance will meet the chief executives of public sector banks (PSBs), regional rural banks (RRBs), the Indian Banks' Association (IBA) and NABARD on September 21 to review preparations for a three-day nationwide bank strike beginning September 28, as reported by Business Standard. The meeting, chaired by the Secretary of the Department of Financial Services, will discuss contingency measures to ensure continuity of banking operations and essential customer services during the strike. The United Forum of Bank Unions (UFBU), an umbrella body of seven bank employee and officer unions, has called the strike over several pending demands, with the implementation of a five-day banking week being one of the key demands. According to Zee News, renewed tensions in the Middle East have once again led firms to build buffers to manage the uncertainties, with firms protecting margins through price increases.
