India's private sector is off to a flying start in the new financial year, with business activity surging to an eight-month high in April, the HSBC Flash Composite PMI reports. The index rose to 60.0, from 59.5 in March, the quickest growth since August 2024 and the longest period of expansion by the sector to 45 straight months.
Key Highlights:
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Export-Driven Momentum: The growth was led by a record increase in new export orders, particularly for manufactured products, as international customers boosted demand. This is the highest export performance since the index was launched in 2014, with manufacturing PMI reaching 58.4—the fastest pace in a year.
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Broad-Based Growth: Activity in the services sector also sped up, with the PMI increasing to a four-month high of 59.1, driven by strong new business and better production.
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Inventory and Supply Chain Trends: Companies boosted purchases of inputs to replenish stocks and defend against shortages, while raw material and semi-finished goods inventories grew at the fastest rate in eight months.
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Softening Confidence: Although the positive data, business sentiment began to demonstrate early caution as fears of global tariffs and prospective demand persisted.
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Global Perspective: The 90-day hiatus in fresh U.S. tariffs opened a window for Indian exporters, allowing India to emerge as a preferred manufacturing base in the face of changing global trade patterns.
With robust global demand and resilient indigenous activity, India's private sector is set for a strong FY26 beginning—even as business leaders remain cautious due to global uncertainties.
Source: Economic Times, Reuters, Trading Economics