Private sector business activity rises to 8-month high in April: PMI data

Business Standard

23-04-2025

India's private sector output grew at its fastest pace in eight months in April amid a sharp rise in new business, particularly 'buoyant' international demand for goods and services, said a private survey on Wednesday.
The HSBC flash India Composite Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 60.0, up from revised 59.5 in March. The index, which measures monthly change in the combined output of the two sectors, has been above the neutral 50 mark that separates growth from contraction for the 45th consecutive month.
"Private sector companies in India welcomed a sharp rise in total new business intakes at the start of the 2025/26 fiscal year, which was boosted by buoyant international demand for goods and services. Collectively, new export orders increased at the fastest pace since the series started in September 2014 as survey participants noted gains from across the globe," said the survey.
Manufacturing clocked a sharper upturn in new business orders than service. Manufacturing flash PMI, which is a composite measure of new orders, output, employment, supplier delivery times, and inventory, improved to 58.4 in April from 58.1 in March.
'Companies operating in India's private sector suggested that output levels had been raised in response to efficiency gains, positive demand trends and successful advertising. Some panellists also reported an improvement in international competitiveness as a result of the rupee's depreciation against the US dollar,' said the survey.
"New export orders accelerated sharply, likely buoyed by the 90-day pause in the implementation of tariffs," said Pranjul Bhandari, chief India economist at HSBC, referring to US President Donald Trump's decision to defer by 90 days his decision to impose tariffs on dozens of countries.
'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," she said.
Amid 'intensification of capacity pressures', companies in both sectors continued to hire additional staff. 'Anecdotal evidence showed that full- and part-time staff had been recruited in April. Rates of job creation were equal at goods producers and service providers.'
Flash PMI records 75 per cent to 85 per cent of the 800 responses from services and manufacturing firms each month. The final manufacturing PMI figure for April will be released on May 2; services and composite PMI figures will be released on May 6.