New Delhi, India (Enmaeya News) — India's private sector experienced unprecedented growth in August 2025, with the Composite Purchasing Managers' Index (PMI) reaching a record 65.2, up from 61.1 in July. This marks the highest reading since the survey's inception in December 2005 and the 49th consecutive month of expansion.

The services sector in India surged in August, with the PMI reaching a record 65.6, driven by strong demand and higher new business orders.

Manufacturing also expanded, with the PMI rising to 59.8, its highest level since January 2008, reflecting increased demand and improved factory conditions.

Alongside this growth, firms raised output prices at the fastest pace in more than 12 years, citing higher wage bills and rising raw material costs. The economic boom also spurred job creation, as companies across both sectors increased hiring, helping to reduce backlogs of work.

The rapid expansion and accompanying price increases present a complex scenario for policymakers. While the Reserve Bank of India (RBI) has maintained its 4% inflation target, the recent surge in prices may prompt a reevaluation of monetary policy to balance growth with inflation control.

Despite the current inflationary pressures, India's economic outlook remains optimistic, bolstered by strong domestic demand and a resilient services sector. However, sustained price increases could influence future policy decisions and impact consumer purchasing power.

In summary, India's economic performance in August 2025 underscores its robust growth trajectory, though the accompanying price hikes warrant careful monitoring to ensure long-term economic stability.