Strong Domestic and Foreign Demand Pushes India’s Composite PMI To 60.0 In April, Fastest Expansion Since August

New Delhi, Apr 22 (KNN) India’s private sector activity expanded at its fastest pace in eight months in April, driven by strong domestic demand and a sharp rise 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, signalling the strongest growth in combined manufacturing and services activity since August. A PMI reading above 50 indicates expansion.

The manufacturing sector demonstrated particularly robust momentum, with its PMI climbing to 58.4 from 58.1, reaching a one-year high. The services sector also sustained solid growth, with its PMI increasing to 59.1 from 58.5, the highest in four months.

The report highlighted that private sector firms recorded a record increase in new export orders during April, supported by strong demand from Africa, Asia, Europe, the Middle East, and the Americas.

Goods producers experienced a stronger expansion rate than service providers, marking the most pronounced increase in over 15 years.

This upturn was largely fuelled by higher business volumes in the services sector and a significant rise in goods production and new orders, particularly from international markets.

New export orders surged to their highest level since September 2014, benefiting the manufacturing industry, which posted its strongest performance in over 15 years.

Pranjul Bhandari, Chief India Economist, HSBC, noted that new export orders accelerated sharply, likely supported by the 90-day pause in the implementation of tariffs announced by US President Donald Trump on April 2.

In response, both manufacturers and service providers boosted output and employment, with manufacturing employment reaching its highest level since March 2005.

Cost inflation remained steady compared to March, but prices charged rose slightly faster, leading to improved margins for firms.

India’s growing role as an alternative global manufacturing hub—especially as China faces elevated US tariffs—has significantly contributed to the surge in external demand.

(KNN Bureau)