The HSBC India Composite PMI fell to 60.7 in July 2025 from a final 61.0 in June, which was a 14-month high, flash data showed. Despite the slight dip, the latest result remained well above its long-run average of 54.8. Services activity rose at a slightly slower pace, though still robust by historical standards, while manufacturing output grew the most since April 2024. Sales, export orders, and output all saw sharp gains. However, employment growth slowed to its weakest in 15 months. Backlogs of work rose solidly, marking the steepest increase in near five years. Inflationary pressures also picked up. Input cost inflation stayed firm but below its long-term average, while output charge inflation quickened as firms passed rising costs onto customers. The pace of increase exceeded the series trend, with stronger price pressures across both manufacturing and services. Finally, confidence fell to its lowest level since March 2023, amid concerns over rising costs and tougher competition.