By Anant Chandak | Reuters | April 23, 2025
India’s private sector growth rose to an eight-month high in April, driven by robust demand, especially a surge in foreign orders for manufactured goods, according to a survey. However, business confidence showed signs of softening.
The HSBC Flash India Composite Purchasing Managers’ Index (PMI), compiled by S&P Global, rose to 60.0, up from 59.5 in March — the strongest combined growth in manufacturing and services since August. (A reading above 50 indicates expansion.)
- Manufacturing PMI increased to 58.4 from 58.1 — the highest in a year.
- Services PMI rose to a four-month high of 59.1 from 58.5.
The strong momentum came from improved new business in services and a jump in production and international demand in manufacturing.
New export orders accelerated sharply, likely buoyed by a 90-day delay in U.S. tariffs announced by President Donald Trump. This led to the strongest export growth since the index’s inception in September 2014, particularly in manufacturing.
“As a result, output and employment grew for both manufacturers and service providers,” said Pranjul Bhandari, Chief India Economist at HSBC.
- Firms increased hiring, with manufacturers recording the highest employment growth since March 2005.
- Input cost inflation was mixed — rising in manufacturing, falling in services.
- Selling prices rose sharply, especially in manufacturing.
Despite the boom, business sentiment softened overall, as optimism waned in the services sector, bringing the outlook for the coming year to an eight-month low.
