India’s private sector output grew at the fastest pace in 8 months in April. A private agency said on Wednesday that this has happened due to the increase in international demand for new business, especially goods and services. The HSBC Flash India Composite Purchasing Managers’ Index (PMI), compiled by S&P Global, rose to 60, from 59.5 in March. This index shows the monthly change in the combined output of the two sectors. If the points remain at 50 then there is no change, while below this indicates contraction and above this indicates expansion. It has expanded for the 45th consecutive month.
The survey said, ‘Private sector companies in India have welcomed a sharp increase in total new business at the beginning of the financial year 2025-26. It is fueled by international demand for goods and services. Overall, new export orders have grown at the fastest pace since the launch of the new series in September 2024. Those who took part in the survey said that they had benefited from every country.
Manufacturing grew faster than services, driven by a sharp increase in new business orders. The manufacturing flash PMI, which includes new orders, output, employment, supplier delivery times and inventories, improved to 58.4 in April from 58.1 in March. The survey said that companies operating in the private sector in India said that production levels have increased due to increased efficiency, positive demand and successful advertising.
Some panelists also reported improvement in international competitiveness, which has resulted from the rupee weakening against the dollar. Pranjul Bhandari, chief India economist at HSBC, said new export orders rose sharply, likely because the Trump tariffs were suspended for 90 days.
Due to pressure to increase capacity, companies in both sectors have continued to recruit additional employees. Anecdotal evidence showed that full-time and part-time employees were recruited in April. The rate of employment creation was similar among goods producers and service providers.
First Published – April 23, 2025 | 11:13 PM IST
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