Private Sector Slows, Job Growth Stalls as Rupee Hits Record Low

• Private sector growth slowed to a 10-month low in December, coinciding with the Rupee hitting an all-time low of 91.8 against the US dollar.
• Employment generation stalled at its weakest pace since 2024, as companies reported sufficient current workforce and declining business optimism.
• The HSBC India Composite PMI fell to 58.9, marking the softest activity since February, with manufacturing and services sectors experiencing slower growth.
• Inflationary pressures remained muted, but selling prices at factories skyrocketed, indicating a challenging economic phase heading into 2026.

Why It Matters: Slowing private sector and stalled hiring indicate a challenging economic future.