Business Activity Reaches a Four-Month High

India’s private-sector business activity strengthened in October 2026, reaching its fastest pace of growth in four months, according to a preliminary HSBC survey compiled by S&P Global. The Composite Purchasing Managers’ Index (PMI) rose to 56.7 from 55.9 in September, indicating continued expansion in business activity. Stronger new orders and improving demand helped support the recovery.

Services Sector Leads the Momentum

The services sector played a major role in the improvement, with its PMI increasing to 56.2 from 55.2. Manufacturing activity also continued to expand, although growth was comparatively moderate. Stronger domestic demand and improving export orders provided additional support, suggesting that businesses in several sectors continued to find opportunities despite economic uncertainty.

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Hiring Fails to Keep Pace With Growth

Despite stronger business activity, employment growth nearly stalled during October. Many companies reportedly relied on their existing workforce to manage rising workloads rather than recruiting additional employees. This gap between business expansion and hiring raises questions about how quickly improved economic activity will translate into new job opportunities.

What Businesses May Watch Next

The coming months will reveal whether the increase in orders can be sustained and whether companies begin expanding their workforces. Businesses will also be monitoring operating costs, customer demand and international market conditions. While the latest PMI reading signals continued expansion, the pace of recruitment remains an important indicator to watch.

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