In April, the growth of India's private sector reached an eight-month high, propelled by strong demand and a notable rise in foreign orders for manufactured goods, according to the HSBC Flash India Composite Purchasing Managers' Index (PMI) generated by S&P Global.
The Composite PMI increased to 60.0 in April, up from 59.5 in March, indicating the highest growth in overall manufacturing and services activity since August. A measurement over 50 indicates growth.
The manufacturing sector exhibited notably robust momentum, as its PMI rose to 58.4 from 58.1, achieving a one-year peak. The services sector continued to show strong growth, with its PMI rising to 59.1 from 58.5, marking the highest point in four months.
This surge was primarily fueled by heightened activity in the services sector and a notable increase in goods manufacturing and fresh orders, particularly from global markets.
"New export orders accelerated sharply, likely buoyed by the 90-day pause in the implementation of tariffs. As a result, output and employment grew, for both, manufacturers and service providers. Cost inflation was in line with March levels, but prices charged rose a tad faster, leading to improved margins," said Pranjul Bhandari, Chief India Economist at HSBC, referencing US President Donald Trump's temporary deferral of broad tariffs announced on April 2.
India's growing role as an alternative global manufacturing center—particularly as China faces increased US tariffs—has fueled this rise in external demand. In reply, both producers and service suppliers boosted production and recruitment, with manufacturing jobs reaching their peak since March 2005.
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