India Sees Strongest Private Sector Growth in Eight Months: HSBC Report
Wednesday, 23 April 2025, 14:32 IST
India’s private sector recorded its fastest expansion in eight months in April, driven by robust manufacturing output and strong services activity, according to HSBC's Flash India Composite Purchasing Managers' Index (PMI), compiled by S&P Global.
The Composite PMI rose to 60.0 in April, up from 59.5 in March, marking the highest level since August 2023. A score above 50 indicates expansion, underscoring broad-based growth across both manufacturing and services.
The manufacturing sector demonstrated strong momentum, with its PMI climbing to 58.4, a one-year high, compared to 58.1 in March. The services sector also continued to perform solidly, with its PMI improving to 59.1 from 58.5, the highest in four months.
HSBC’s report attributed the upswing to record-breaking foreign demand, with new export orders soaring to their highest level since September 2014. The surge was particularly beneficial to manufacturers, who recorded the most pronounced rate of expansion in over 15 years.
"Private sector firms noted a record increase in new export orders during April amid healthy demand from Africa, Asia, Europe, the Middle East and the Americas", the report stated. "Goods producers saw a stronger rate of expansion than service providers".
The growth comes amid a 90-day deferral of tariff implementation by the United States, announced earlier this month, which analysts believe buoyed global demand for Indian exports. Pranjul Bhandari, Chief India Economist at HSBC, noted, "New export orders accelerated sharply, likely buoyed by the 90-day pause in tariffs. As a result, output and employment grew, for both manufacturers and service providers".
India's emerging role as a global manufacturing alternative to China particularly in light of rising US-China trade tensions also contributed to the surge in demand. In response, firms expanded production capacity and boosted hiring. Manufacturing employment rose to its highest level since March 2005.
While input cost inflation remained steady compared to March, selling prices rose slightly, helping businesses maintain profit margins.
This latest data suggests India’s private sector is poised for continued momentum, backed by resilient demand at home and abroad.
The Composite PMI rose to 60.0 in April, up from 59.5 in March, marking the highest level since August 2023. A score above 50 indicates expansion, underscoring broad-based growth across both manufacturing and services.
The manufacturing sector demonstrated strong momentum, with its PMI climbing to 58.4, a one-year high, compared to 58.1 in March. The services sector also continued to perform solidly, with its PMI improving to 59.1 from 58.5, the highest in four months.
HSBC’s report attributed the upswing to record-breaking foreign demand, with new export orders soaring to their highest level since September 2014. The surge was particularly beneficial to manufacturers, who recorded the most pronounced rate of expansion in over 15 years.
"Private sector firms noted a record increase in new export orders during April amid healthy demand from Africa, Asia, Europe, the Middle East and the Americas", the report stated. "Goods producers saw a stronger rate of expansion than service providers".
The growth comes amid a 90-day deferral of tariff implementation by the United States, announced earlier this month, which analysts believe buoyed global demand for Indian exports. Pranjul Bhandari, Chief India Economist at HSBC, noted, "New export orders accelerated sharply, likely buoyed by the 90-day pause in tariffs. As a result, output and employment grew, for both manufacturers and service providers".
India's emerging role as a global manufacturing alternative to China particularly in light of rising US-China trade tensions also contributed to the surge in demand. In response, firms expanded production capacity and boosted hiring. Manufacturing employment rose to its highest level since March 2005.
While input cost inflation remained steady compared to March, selling prices rose slightly, helping businesses maintain profit margins.
This latest data suggests India’s private sector is poised for continued momentum, backed by resilient demand at home and abroad.
.jpg "Dr Suresh Raghavaiah: Bringing Global Expertise to Advance Transplant Surgery in India")
