India’s private sector activity accelerated in April as stronger demand, higher new orders, capacity expansion and technology investment supported growth. The HSBC Flash India PMI Composite Output Index, which tracks monthly changes in manufacturing and services output, rose to 58.3 in April from 57.0 in March. The reading indicates continued expansion in private sector activity, with manufacturing leading the rebound.
PMI Reading and Growth Trend
The composite PMI rose sharply after easing in March. A reading above 50 shows expansion. April’s increase reflected stronger business conditions across both manufacturing and services. The pace of growth was among the stronger readings in recent months.
Manufacturing Leads the Upturn
Manufacturing recorded faster growth in output and new orders than services. Goods producers saw a strong rise in sales and production. Export orders in manufacturing also expanded at the fastest pace in nine months. The sector benefited from improved demand and higher purchasing activity.
Employment, Inventories and Prices
Private sector employment increased, with job creation reaching a 10-month high. Firms also built buffer stocks to manage supply-side uncertainties. Finished goods and input inventories rose. Input cost pressures remained elevated, and companies passed on part of the increase through higher selling prices. Inflation stayed historically high, but eased from the previous month due to softer price pressures in services.
External Demand and Middle East Impact
Export trends were mixed across sectors. Services firms reported the weakest growth in export orders in over a year, partly due to the Middle East conflict. At the composite level, new export business rose at a slower pace than in March. The data suggest that domestic demand remained the main driver of April’s private sector expansion.
Last Modified: April 25, 2026