India’s Private Sector Records Strong Growth in February 2026
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India’s private sector expanded at a strong pace in February 2026, mainly driven by higher manufacturing activity. According to a flash Purchasing Managers’ Index (PMI) survey released by HSBC and S&P Global, business activity improved compared to January.
The Composite PMI rose to 59.3 in February from 58.4 in January. A PMI reading above 50 shows growth, so this indicates that the economy is expanding at a healthy rate. This is the fastest growth seen in three months.
Manufacturing Sector Shows Strong Performance
Manufacturing was the main reason behind the rise. The Manufacturing PMI increased to 57.5 in February, compared to 55.4 in January. This shows that factories are producing more goods due to strong demand.
Companies reported an increase in new orders, especially from domestic customers. Export orders also improved, supporting overall production growth.
Services Sector Continues to Grow
The services sector also expanded in February, but at a slower pace compared to January. Even though growth was slightly softer, services companies continued to receive new business and remained positive about future demand.
Hiring and Business Confidence Improve
Because of rising demand, many companies increased hiring. Employment growth reached its highest level in three months. Business confidence also improved, with firms expecting steady growth in the coming year.
Rising Costs Remain a Concern
While growth is strong, companies are facing higher input costs. Cost pressures increased at the fastest rate in over a year. As a result, many businesses raised their selling prices.
Rising inflation may influence future decisions by the Reserve Bank of India (RBI), especially regarding interest rates.
What This Means
The February 2026 data shows that India’s economy is performing well, with manufacturing leading growth. However, rising costs and inflation will need careful monitoring in the coming months.
04:22 PM, Feb 20
Source : India’s Private Sector Records Strong Growth in February 2026
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