India’s private sector expansion reached an eight-month high in April, fueled by strong demand and a notable surge in foreign orders for manufactured goods, according to the HSBC Flash India Composite Purchasing Managers’ Index (PMI), compiled by S&P Global.
The Composite PMI rose to 60.0 in April from 59.5 in March, marking the strongest growth in combined manufacturing and services activity since August. A reading above 50 signals expansion.
The manufacturing sector showed particularly strong momentum, with its PMI climbing to 58.4, up from 58.1, reaching a one-year high. The services sector also maintained solid growth, with its PMI increasing to 59.1 from 58.5, the highest level in four months.
“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. Goods producers saw a stronger rate of expansion than service providers, and one that was the most pronounced in over 15 years,” it said in its report.
This upswing was driven largely by increased business in the services sector and a significant rise in goods production and new orders, especially from international markets. New export orders surged to their highest level since September 2014, mainly benefiting the manufacturing industry, which posted its strongest performance in over 15 years.
“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 strengthening position as an alternative global manufacturing hub—especially as China grapples with higher US duties—has contributed to this surge in external demand. In response, both manufacturers and service providers increased output and hiring, with manufacturing employment rising to its highest level since March 2005.
