India’s January PMI Beats Forecasts, Signaling Strong Economic Momentum

India’s economy began 2026 on a strong note as HSBC Flash PMI data for January showed broad-based expansion across manufacturing and services, surpassing market forecasts. The upbeat numbers reflect resilient demand, improved output, and sustained business confidence, underscoring India’s position as one of the fastest-growing major economies.

Key Highlights:

• Manufacturing PMI: Rose to 56.8, above the forecast of 56.0, driven by stronger new orders and production growth.
• Services PMI: Climbed to 59.3, beating expectations of 58.5, supported by robust demand in IT, financial services, and consumer-facing industries.
• Composite PMI: Registered 59.5, higher than the forecast of 58.0, marking one of the strongest expansions in recent months.
• Economic Implication: The data suggests broad-based resilience, with both domestic and export demand contributing to growth.
• Policy Outlook: Strong PMI readings may give policymakers confidence to maintain fiscal consolidation while supporting infrastructure and investment.
• Investor Sentiment: Positive PMI surprises often bolster equity markets, particularly in cyclical sectors like metals, banking, and consumer goods.

India’s January PMI results reaffirm the country’s robust growth momentum, signaling optimism for businesses and investors as 2026 unfolds.

Sources: Reuters, HSBC, Economic Times