India’s Economy Expands Rapidly in August with PMI at 65.2 Despite 50% U.S. Tariff, Sharpest Price Hikes in Over a Decade

India's economy experienced robust growth in August 2025, driven primarily by a strong services sector and rapid expansion in business activity, according to multiple surveys including HSBC and PMI data. The HSBC India Manufacturing PMI rose to 59.8 in August from 59.1 in the previous month, while the overall PMI surged to 65.2, marking the fastest pace of business activity in at least two decades. This economic momentum coincided with the sharpest price increases in over ten years, reflecting significant inflationary pressures. These developments occurred despite the imposition of a 50% tariff on Indian goods by U.S. President Donald Trump. Meanwhile, China's global payments growth in yuan remained steady at 2.88% in August, unchanged from the previous month.