India's private-sector activity edged up in August 2026, with the HSBC India Composite PMI rising to 54.6 from July's 52-month low of 54.3 and exceeding the Reuters poll median estimate of 54.3. The reading remained above the 50 mark separating expansion from contraction but was below the recent average of about 60. Faster growth in new orders supported the improvement, although demand remained weak by long-term standards and export-order growth slowed from July. Services led the rebound, with the PMI rising to 54.5 from 53.3, while the manufacturing PMI fell to 52.9 from 53.5, its weakest expansion since August 2021. Factory output and new orders grew at their slowest pace in five years, and manufacturing employment declined for the first time in two-and-a-half years. Overall employment growth accelerated to its joint-fastest pace since June 2025, driven by a 15-month high in services hiring. Overall input-cost pressures eased to a seven-month low, but companies increased selling prices at the fastest rate since April. Business confidence improved, though optimism was more subdued than in early 2026.