<p>Bengaluru: India's business activity expanded at the fastest pace in four months in January on stronger demand, according to a private survey that also showed input costs rising at the quickest rate since August.</p>.<p>The findings indicate Asia's third-largest economy would continue to hold onto its title as the fastest growing major economy in the near-term at least. India will grow 6.9 per cent in the current fiscal year, a <em>Reuters</em> poll showed on Wednesday.</p>.<p>HSBC's flash India Composite Purchasing Managers' Index (PMI), compiled by SP Global, rose to 61.0 this month, its highest since September, from December's final reading of 58.5.</p>.<p>That put the index above the 50-mark that separates expansion from contraction for the 30th consecutive month.</p>.<p>"The economy grew at a faster pace in January, led by stronger manufacturing output, as well as more robust business services activity," noted Pranjul Bhandari, chief India economist at HSBC.</p>.<p>"New orders rose at a faster pace than a month ago, and within that, international orders were stronger than before."</p>.<p>A manufacturing PMI rose to 56.9 in January from 54.9 last month. Activity in the dominant services industry also accelerated at a sharper rate, with its PMI rising to 61.2 this month from 59.0 in December.</p>.<p>That was primarily due to a strong expansion in demand. Factory new orders grew at the quickest pace in four months while new business in the services sector increased at its fastest rate since July 2023.</p>.<p>Improving demand boosted firms' expectations for the coming 12 months, especially in manufacturing as the future output soared to its highest in over nine years.</p>.<p>Firms continued to hire for a 20th consecutive month, but higher employment generation took place in the services industry.</p>.<p>Although overall output prices rose at a slower rate in January, input costs increased at the sharpest pace since August 2023, indicating price pressures could remain elevated.</p>.<p>India's retail inflation hit a four-month high in December, and a <em>Reuters</em> poll suggested the Reserve Bank of India would keep interest rates on hold until at least July.</p>
<p>Bengaluru: India's business activity expanded at the fastest pace in four months in January on stronger demand, according to a private survey that also showed input costs rising at the quickest rate since August.</p>.<p>The findings indicate Asia's third-largest economy would continue to hold onto its title as the fastest growing major economy in the near-term at least. India will grow 6.9 per cent in the current fiscal year, a <em>Reuters</em> poll showed on Wednesday.</p>.<p>HSBC's flash India Composite Purchasing Managers' Index (PMI), compiled by SP Global, rose to 61.0 this month, its highest since September, from December's final reading of 58.5.</p>.<p>That put the index above the 50-mark that separates expansion from contraction for the 30th consecutive month.</p>.<p>"The economy grew at a faster pace in January, led by stronger manufacturing output, as well as more robust business services activity," noted Pranjul Bhandari, chief India economist at HSBC.</p>.<p>"New orders rose at a faster pace than a month ago, and within that, international orders were stronger than before."</p>.<p>A manufacturing PMI rose to 56.9 in January from 54.9 last month. Activity in the dominant services industry also accelerated at a sharper rate, with its PMI rising to 61.2 this month from 59.0 in December.</p>.<p>That was primarily due to a strong expansion in demand. Factory new orders grew at the quickest pace in four months while new business in the services sector increased at its fastest rate since July 2023.</p>.<p>Improving demand boosted firms' expectations for the coming 12 months, especially in manufacturing as the future output soared to its highest in over nine years.</p>.<p>Firms continued to hire for a 20th consecutive month, but higher employment generation took place in the services industry.</p>.<p>Although overall output prices rose at a slower rate in January, input costs increased at the sharpest pace since August 2023, indicating price pressures could remain elevated.</p>.<p>India's retail inflation hit a four-month high in December, and a <em>Reuters</em> poll suggested the Reserve Bank of India would keep interest rates on hold until at least July.</p>