Private sector output has grown at its fastest pace in eight months in April on the back of a sharp rise in new businesses; particularly buoyant international demand for goods and services, shows a private survey.
According to the purchasing managers’ index (PMI), published by HSBC and compiled by S&P Global, rose to 60, from 59.5 in the previous month, making the reading the highest in the past eight months. The index has been above the neutral 50 mark that separates growth from contraction for the 45th consecutive month, the bank said on Wednesday.
“Private sector companies have seen a sharp rise in new business intakes at the start of FY26, boosted by buoyant international demand for goods and services. Collectively, new export orders rose at the fastest pace since the series started in September 2014 as survey participants noted gains from across the globe,” said Pranjul Bhandari, chief economist at HSBC India.
Manufacturing fared better than services in bagging new orders, she said, adding manufacturing flash PMI, which is a composite measure of new orders, output, employment, supplier delivery times, and inventory, improved to 58.4 in April from 58.1 in March.
Companies said output levels have been raised in response to efficiency gains, positive demand trends and successful advertising. Some also reported an improvement in competitiveness as a result of the rupee fall, said the survey.
“New export orders accelerated sharply, likely buoyed by the 90-day pause in the implementation of punitive tariffs that the US had imposed," said Bhandari, referring to US decision to defer by 90 days his decision to impose tariffs on dozens of countries.
“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," she said.