New Delhi: India’s robust economic growth continued in August, as a stronger services sector offset a slight slowdown in manufacturing expansion. This positive trend suggests that India will maintain its position as the world’s fastest-growing major economy despite global economic uncertainties.
According to the HSBC’s flash India Composite Purchasing Managers’ Index (PMI), compiled by S&P Global, the overall business activity index dipped slightly to 60.5 in August from 60.7 in July. This marks over three years of continuous expansion, the longest such streak since June 2013.
While the manufacturing sector’s new order growth slowed, it remained at a robust level, indicating strong demand. The services sector, however, saw a slight increase in activity.
Although overall input costs rose at a slower pace, prices charged for manufactured goods surged at their fastest rate in nearly 11 years. India’s retail inflation also declined in July due to a high-base effect, but concerns about inflation and competition led to a decline in business confidence.
Despite these factors, India’s strong economic performance is expected to continue in the coming quarters, driven by a resilient domestic market and favorable conditions.
