India’s private-sector business activity accelerated in October 2026, reaching its strongest pace in four months, according to a preliminary HSBC survey released on October 23. The Composite Purchasing Managers’ Index (PMI) rose to 56.7 from 55.9 in September. Readings above 50 indicate expansion, suggesting that companies continued to experience improving business conditions.

The services sector was the main driver of the improvement, supported by stronger new orders and growing demand. Export orders also increased at their fastest pace in six months, providing support to parts of the private sector. Manufacturing continued to expand, although its headline PMI eased slightly compared with the previous month.

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Despite stronger activity, employment growth almost came to a standstill. The survey indicated that companies were managing increased workloads largely with their existing employees rather than hiring additional staff. This creates an important contrast: businesses are reporting better demand, but the improvement is not translating into a similar increase in recruitment.

The next challenge for companies will be to sustain growth while managing staff capacity and operating costs. If new orders remain strong, businesses may eventually need more workers, but hiring decisions will depend on confidence in future demand and productivity. The coming months will help show whether October’s momentum leads to broader job creation across India’s economy.