The Indian economy is off to a good start to 2024, says HSBC's flash survey

India grew rapidly in January, with services activity rising to a six-month high and manufacturing picking up steam, a new flash survey from HSBC Holdings showed.

The services purchasing managers' index rose to 61.2 from 59 in December, while the manufacturing PMI rose to a four-month high of 56.9, HSBC said. The composite PMI jumped to 61. The indices are based on preliminary survey results, with the final PMI data to be released next week. A reading above 50 indicates expansion compared to the previous month, while a reading below indicates a decline in activity.

“New orders rose faster than a month ago and international orders were stronger than before,” Pranjul Bhandari, chief India economist at HSBC, said in a statement.

India is one of the world's fastest-growing major economies, with the government expecting growth of 7.3% for the fiscal year ending March. The Governor of India's central bank recently said that growth is expected to touch 7% in the coming financial year as well.

The services sector accounts for more than half of India's gross domestic product, although manufacturing activity has picked up momentum recently, giving a boost to economic growth in the July-September quarter.