Business activity stays above 60-mark in July despite global uncertainty

Manufacturing PMI rose to its highest level, crossing the 59-mark for the first time in over a year, while services activity slowed a tad.

India’s business activity remained robust in July, with the composite Purchasing Managers’ Index (PMI) remaining above the 60-mark at 60.7, compared to 61 in June, according to preliminary data released by HSBC on July 24.

The index has now remained above the 60-mark for two consecutive months, signalling sustained economic momentum. Manufacturing PMI rose to its highest level, crossing the 59-mark for the first time in over a year, while services activity slowed a tad.

The resilient performance comes amid global headwinds, including trade disruptions and tariff uncertainty, particularly from the US.

On July 23, the Asian Development Bank cut its FY26 GDP forecast for India to 6.5 percent, down from 6.7 percent projected in April. It expects the economy to grow by 6.7 percent in FY27, slightly lower than the earlier 6.8 percent estimate.

Similarly, India Ratings and Research (Ind-Ra) revised its FY26 growth estimate to 6.3 percent, citing that “headwinds are greater than tailwinds.”