India’s private-sector business activity rose to a three-month high in September, according to recently released purchasing managers’ survey data. The improvement was supported by stronger activity in both manufacturing and services, while new orders and employment also showed gains.
The latest figures provide a snapshot of business conditions across two major parts of India’s economy. Manufacturing activity reflects conditions in factories and industrial production, while the services sector covers a broad range of activities including business services, finance, transport and other industries.
The improvement in new orders is an important part of the latest data because orders are closely watched as an indicator of future business activity. Higher demand can encourage companies to increase production and, in some cases, hire additional workers.
India’s economic outlook has also received attention from international institutions. The OECD has raised its FY2027 growth forecast for India to 7.1%, while the Asian Development Bank has also revised its FY2027 projection upward to 7%. These are forecasts rather than guaranteed outcomes and can change as economic conditions develop. The latest business survey therefore adds another data point to the broader picture of India’s economy. Economists and investors will continue watching consumer demand, inflation, exports, investment and global conditions during the rest of the financial year
