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flag India's private sector grew in February 2026, driven by strong manufacturing and demand, but inflation spiked due to rising costs.

flag India's private sector expanded at a three-month high in February 2026, with the HSBC Flash PMI rising to 59.3, driven by strong manufacturing output and robust new orders. flag The manufacturing sector led growth, while services saw a slight slowdown but still recorded solid expansion. flag Companies increased hiring and purchasing, reflecting strong business confidence and rising demand. flag However, inflation surged, with input costs rising at the fastest pace in 15 months, fueled by higher prices for materials, freight, labor, and food. flag Service providers faced the steepest input cost increases in two-and-a-half years, pressuring profit margins despite sustained supply chain efficiency.

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