Business activity picks up, rises to 59.5 in January

Business activity for January

India’s business activity rose to 59.5 in January from 57.8 in the previous month, according to HSBC Composite Flash PMI released on January 23.

January marks the first time in five months that PMI activity picked up. Overall, economic activity remains higher than long-run average of 55.

India’s growth is expected to slowdown in the third and fourth quarters of the year compared with the 8 percent expansion witnessed in the first six months.

International agencies expect the economy to grow 6.4-6.5 percent in the coming year compared with expected 7.3 percent this fiscal.

Last week, International Monetary Fund (IMF) raised India’s growth forecast for FY27 to 6.4 percent from 6.2 percent projected earlier.