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The latest HSBC ‘flash’ PMI survey compiled by S&P Global has showed that surging new business and export sales boosted output growth across India's private sector economy in the month of November. Rising capacity pressures, evidenced by increasing backlogs, prompted companies to ramp up hiring efforts, which was supported by an overall improvement in business activity expectations. However, this strengthening of operating conditions came amid intensifying cost pressures and the steepest upturn in selling prices since February 2013.

The HSBC Flash India Composite Output Index -- a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors -- rose from a final reading of 59.1 in October to 59.5 in November, indicating a sharp rate of expansion that was the strongest in three months and above its long-run average. Growth ticked lower in the manufacturing industry whilst picking up in services, although the former outperformed again.

Cost pressures across India's private sector intensified in November, reaching their highest since August 2023. Manufacturers commented on price hikes for a range of raw materials, including aluminium, cotton, leather and rubber. Service providers particularly remarked on greater food costs (cooking oils, eggs, meat and vegetables) and wage bills. Although service providers noted a stronger increase in cost burdens than manufacturers, rates of charge inflation were broadly similar across the two sectors and both saw acceleration since October.