India's business activity surges to 14-year high in April: PMI data

Business activity surged in April to its highest level in nearly 14 years, sustained by robust demand, as per the HSBC Flash India PMI report. The composite index reached 62.2, indicating continuous expansion since August 2021, alongside positive job growth and decreased input inflation, affirming India's status as the fastest-growing major economy. Both manufacturing and service sectors witnessed substantial growth, driven by increased new orders. Despite strong demand, composite input and output prices moderated, with manufacturing firms successfully passing on higher prices to customers. International demand remained robust, contributing to the highest composite sub-index since 2014, while the future business outlook improved, reflecting optimism.

Services activity led the expansion, hitting a three-month high at 61.7, fuelled by accelerated new business, while manufacturing PMI remained robust at 59.1, with output and new orders for goods continuing to grow. Efforts to meet rising job demands were particularly notable in manufacturing. However, employment generation among services firms slowed compared to March. The report portrays a buoyant economy with strong prospects for future growth, underpinned by robust demand dynamics across sectors.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.