INDIA’S BUSINESS ACTIVITY REBOUNDS TO THREE-MONTH HIGH IN SEPTEMBER

India’s private-sector business activity strengthened in September, with the HSBC flash Composite Purchasing Managers’ Index indicating that overall activity reached a three-month high. The improvement reflects continued expansion in both manufacturing and services and provides another signal that domestic economic activity remains relatively firm despite volatility in financial markets. Business surveys are closely watched because they capture changes in new orders, output, employment, exports and business expectations before many official economic statistics become available. The latest improvement suggests that companies are continuing to experience demand and maintain production, although individual sectors may be performing differently. For manufacturers, stronger activity can translate into higher utilisation of factories and increased demand for raw materials, logistics and industrial services. For services companies, continued expansion can support employment and consumer spending. The data also arrives alongside a strong investment pipeline, including large proposals in power, data centres, technology and manufacturing. Taken together, these indicators suggest that India’s economic story is not being driven solely by financial markets but also by continuing activity within the real economy. Risks remain, particularly from energy prices, global trade conditions and international interest rates, but the September business survey provides evidence of continuing expansion. Businesses and investors will now watch whether the improvement persists through the rest of the quarter and translates into stronger earnings, hiring and capital expenditure.