India’s economic activity slowed slightly in December 2025 but continued to show strong expansion, according to a flash survey released by HSBC. Both manufacturing and services sectors remained well above the 50 mark, which separates growth from contraction.
India PMI December 2025: Key Numbers
- Manufacturing PMI: 55.7 (November: 56.6)
- Services PMI: 59.1 (November: 59.8)
- Composite PMI: 58.9 (November: 59.7)
Although all three indicators eased compared to November, they continued to signal solid growth momentum in India’s private sector.
What Does the PMI Data Indicate?
HSBC said business activity in India continued to rise sharply in December, even though the pace of expansion moderated. The slowdown was seen across both manufacturing and services, reflecting softer demand conditions.
Labor-intensive industries faced some pressure as global trade concerns weighed on sentiment, including the impact of higher U.S. tariffs announced by President Donald Trump.
Exports Show a Bright Spot
Despite the overall slowdown, export demand improved. HSBC noted that growth in new export orders accelerated in December and reached a three-month high. This suggests external demand remains supportive for Indian businesses.
Overall Economic Outlook
The December PMI data shows that India’s economy remains on a strong footing, even as growth cooled slightly from recent highs. With PMI levels still comfortably above 50, the data points to continued expansion rather than any sharp slowdown.
If export momentum holds and domestic demand stabilizes, India’s private sector growth is likely to remain resilient in the coming months.
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