Page 19 - Policy Economic Report - August 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Top five major states with high Year on Year inflation for the month of July, 2025 are shown in the graph
below.

Figure 12: Top five major states with high Year on Year inflation for the month of July, 2025

Source- NSO

Manufacturing PMI – India

• India’s private sector economy recorded its fastest growth since the start of survey data in December
2005, with the headline HSBC Flash India Composite PMI Output Index rising over four points to 65.2
from 61.1 in July, according to S&P Global.

• Both manufacturing and services sectors reported accelerated growth, with services outperforming
and registering a fresh survey high in business activity. The services sector spearheaded this growth
with HSBC Flash India Services PMI Business Activity Index soaring to a survey high of 65.6 from 60.5
in the last month.

• The HSBC Flash India Manufacturing PMI rose to 59.8 in August from 59.1 in July, its highest reading
since January 2008, signaling faster improvement in factory operating conditions.

• Demand conditions strengthened further, with both goods producers and service providers recording
sharp increases in new business. Export orders grew at the fastest pace since composite data
collection began in 2014, supported by stronger inflows from Asia, the Middle East, Europe and the
US.

• Hiring activity continued for the 27th straight month. Overall job creation quickened in August, driven
by stronger employment growth in services, which offset a marginal slowdown in manufacturing.

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