This April, India’s private sector experienced its fastest growth rate in eight months, fuelled by a significant increase in demand and a sharp rise in overseas orders for manufactured goods. The HSBC Flash India Composite Purchasing Managers’ Index (PMI), reported by S&P Global, increased to 60.0 in April from 59.5 in March. This represents the strongest growth in manufacturing and services since August.
Manufacturing growth stood out, with a PMI of 58.4—the highest level in a year—up from 58.1. The services sector also fared well, with a four-month high PMI of 59.1, up from 58.5. A record surge in new export orders was a major contributor to this growth, with high demand recorded from Africa, Asia, Europe, the Middle East, and the Americas.
Pranjul Bhandari, HSBC’s Chief India Economist, said that a short stop in tariff implementation led to the export surge. This increase resulted in improved output and employment in both industries. While input cost inflation remained unchanged from March, selling prices rose slightly, increasing business margins.
Despite increased costs in resources such as rubber, steel, and chemicals, inflation remained controllable and lower than long-term averages.
