India’s manufacturing and services PMI ticks higher in January

India’s manufacturing + services activity picks up in January

India’s manufacturing activity edged up in January as demand modestly improved, though the recovery was insufficient to lift business sentiment or spur hiring, as per HSBC India’s ManufacturingPurchasing Managers’ Index. The PMI rose to 55.4 from December’s two-year low of 55.0 — remaining above the 50 mark that separates growth from contraction.

Factory output and new orders strengthened, largely driven by domestic demand, while export orders improved only marginally despite shipments to Asia, Europe, and the Middle East. Hiring rose to a three-month high but stayed subdued, and business confidence slipped to a three-and-a-half-year low.

The services sector also rebounded in January, after hitting an 11-month low in December, rising to 58.5 from 58.0, driven by stronger demand, though hiring remained muted, as per the index. New business grew at its fastest pace since November, supported by better online reach and higher overseas demand from South and Southeast Asia.

India in talks to link UPI with Alipay+ network

India is in talks with Singapore-based Ant International to link global wallet network Alipay+ with India’s instant payments rail, Unified Payments Interface (UPI), Reuters reports, citing two unnamed sources. The proposed link would allow Indian tourists to make payments using UPI in countries across Asia, Europe and Latin America connected to Alipay+.

Alipay+? The platform connects about 1.8 bn user accounts and more than 150 mn merchants across over 100 markets, including the Middle East.

Regulatory backdrop: Any decision will be taken after security considerations, given sensitivities around digital infrastructure, data, and Alipay’s China links — India has maintained tight scrutiny of Chinese-linked investment since the 2020 border standoff. The discussions fall under New Delhi’s broader push to expand UPI’s overseas reach for travelers and the Indian diaspora.