Page 26 - Policy & Economic Report - July 2025

POLICY AND ECONOMIC
ROEILPO&RGTAS MARKET

Figure 13: HSBC India Composite PMI Output Index and GDP Growth (2013–2026)

Source: HSBC, S&P Global PMI

Despite the moderation in domestic demand, export performance remained encouraging. New export
orders accelerated across both manufacturing and services, with goods producers recording particularly
strong gains. At the composite level, international sales expanded at the fastest pace since March,
highlighting the resilience of external demand even as domestic business activity slowed. However, overall
growth in new orders eased to its weakest pace in nearly four-and-a-half years, reflecting softer market
conditions and increased competition.

Employment conditions continued to improve during July, extending the current hiring streak to seven
consecutive months. Although job creation remained modest, firms continued to recruit additional
workers, with service providers accounting for the bulk of new employment. At the same time,
outstanding business volumes declined for the first time in three months, largely due to the clearance of
backlogs in the services sector, whereas unfinished work continued to accumulate among manufacturers.
Business confidence, however, weakened to a six-month low, with firms citing uncertainty over future
demand despite expectations of improved market conditions over the coming year.

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