Private sector business activity rises to an eight-month high in April: Purchasing Managers' Index (PMI) data

India's private sector business activity reached an eight-month high in April, driven by a significant increase in new business and robust international demand for goods and services. The HSBC flash India Composite Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 60.0 in April, up from the revised 59.5 in March. This marks the 45th consecutive month above the neutral 50 mark, indicating sustained growth. The manufacturing sector recorded a stronger upturn, with the manufacturing flash PMI rising to 58.4 in April from 58.1 in March. New export orders increased at the fastest pace since September 2014, boosted by global demand and the 90-day pause in US tariff implementation. Companies in the private sector raised output levels in response to efficiency gains, positive demand trends, and successful advertising. The rupee's depreciation against the US dollar also enhanced international competitiveness. 

Amid intensifying capacity pressures, manufacturing and service sectors continued hiring additional staff in April. Anecdotal evidence suggested that full- and part-time positions were created, with job creation rates equal across both sectors. Output and employment grew, contributing to improved margins as cost inflation remained aligned with March levels, while prices charged increased slightly faster. The final manufacturing PMI for April will be released on May 2, 2025, with services and composite PMI figures to follow on May 6, 2025.

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