India’s Business Activity Continues to Expand as Growth Levels Rebound

The First Data on Economic Activity Levels in India - Every Month
The only survey with current month, month-on-month, monthly year-on-year, and forward looking questions
Updated: May 20, 2026

Both the Sales and Market Growth Indexes improved in May from the dip seen in April, likely caused by shocks associated with the conflict in the Middle East. The May data points to demand conditions that remain strikingly resilient.

India's Headline SMI shows firm expansion in May with an SMI reading of 53.0, up from April, and indicative of strong business activity continuing from earlier in the year. That consistency is itself a signal worth noting over the full twelve-month series, the Headline SMI has ranged only between 52.4 and 53.9, a band of remarkable stability that contrasts sharply with the volatility evident in the comparable US survey. The broader picture is one of durable, consistent momentum. An economy generating growth without overheating and resilient to sudden shocks.

Note: Data Shown as a Diffusion Index. (50 = 'No Change', above 50 = Increasing growth, below 50 = Declining growth)

The Business Confidence Index increased sharply in May to 54.2, up 2.1 index points and very close to the highs recorded before the Middle East crisis. The two Growth Indexes offer the most compelling picture: both registered consistent increases this month, with readings close to recent highs. The Prices Charged Index tells a different story, after touching 55.7 in April, it eased to 54.2 in May, a notable deceleration that, if sustained, points to softening input cost pressures and improved purchasing power for Indian consumers. Staffing Levels remained the persistent counterpoint, holding just above the 50.0 threshold that separates expansion from contraction. Employment creation expanded, but only at a cautionary pace.

The aggregate picture is of an economy performing well across demand and pricing measures, while labour markets respond with characteristic caution. The improvements in Sales Growth, moderating price inflation, and buoyant Business Confidence together represent a more balanced growth profile than India has shown in recent months. Staffing Levels will bear watching, as sustained growth in sales without a corresponding pickup in hiring would eventually strain capacity. If demand conditions hold at current levels, employment growth will likely accelerate in the coming months, and the broader economy will consolidate its position as one of the strongest-performing major economies in the current global environment.

Sales Managers Index Components

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About the Sales Managers Indexes

The Sales Managers' Indexes provide the earliest monthly data on the speed and direction of economic activity in key growth areas of the world.

The SMI’s (Sales Managers’ Indexes) are compiled and analysed by World Economics and are based on survey data collected from a panel of companies stratifying all Industry Classification Board (ICB) sectors which are weighted to reflect their contribution to national Gross Domestic Product.

Key advantages of the SMI's:

• The SMI's provide the first indication each month of the speed and direction of economic growth.
• The SMI's provide the most complete indication of growth, covering all private sector activity.
• The SMI's are based on a key occupational group - sales executives - uniquely able to sense accurate changes in business activity levels.
• The SMI survey base - salespeople - are used by virtually all businesses, including in frontier markets, unlike other occupational groups.
• The SMI's focus on the key countries contributing to over 60% of global growth in recent years.