The HSBC flash composite output index rose to 59.3 in February from 58.4 in January. A score above 50 indicates expansion in the sector.

The acceleration in growth was driven by a quicker upturn in manufacturing production. The Manufacturing PMI climbed to a 4-month high of 57.5 in February from 55.4 in January.

Meanwhile, the services activity expanded at a broadly similar rate to that seen in January, as the Services PMI business activity index stood at 58.4 in February versus 58.5 in January.

New orders received by the Indian private sector grew at the fastest pace in three months, buoyed by demand strength, local tourism, marketing efforts, and rising client inquiries. Export orders also logged the strongest expansion since September 2025. Total sales growth at goods producers was a 4-month high, while that in the services sector retreated to a 13-month low.

In line with rising orders and outstanding business volumes, private sector companies raised their employment levels at the quickest pace in three months. They also scaled up purchasing activity, with the rate of growth accelerating to a 4-month high.

On the price front, input price inflation accelerated to a 15-month high in February amid higher costs for chemicals, eggs, freight, labor, machinery, meat, metals, packaging materials, and vegetables. Consequently, selling prices rose at the fastest pace in six months.

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