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India's Private Sector Growth Accelerates in April as Manufacturing Leads

India's private sector activity accelerated in April, with the HSBC Flash Composite PMI rising to 58.3 from 57.0 in March. Manufacturing was the key driver, showing notable rebounds in output and new orders compared to a more moderate services expansion. Companies reported building buffer stocks amid supply-side uncertainties and continued to pass higher input costs to customers. Employment growth reached a ten-month high, supported by business expansion plans and positive forecasts.

Key Points: India's Private Sector Growth Picks Up in April: HSBC PMI

  • Faster growth in April
  • Manufacturing leads resurgence
  • Job creation at 10-month high
  • Input costs remain elevated
2 min read

India's private sector gains momentum in April as manufacturing drives growth: HSBC PMI

India's private sector activity expanded faster in April, driven by strong manufacturing growth and improved services, according to HSBC's flash PMI data.

"The survey indicated that firms are building buffer stocks to manage the uncertainties around the longevity of the supply-side shock. - Pranjul Bhandari"

New Delhi, April 23

India's private sector grew faster in April, with strong expansion in both manufacturing and services, according to HSBC's latest flash Purchasing Managers' Index data.

The HSBC Flash India PMI Composite Output Index rose to 58.3 in April, up from 57.0 in March, indicating solid growth compared to the long-term average.The improvement comes after a slower March. Businesses reported better demand and a pickup in activity. The survey noted that overall output and new orders increased at a faster pace at the start of the new fiscal year, supported by capacity expansion, stronger demand, more new work, and technology investments

"Aggregate activity and new orders in India's private sector expanded at quicker rates at the start of this fiscal year, after growth receded in March due to the Middle East war," The report noted, Manufacturing emerged as the key driver of growth. The report highlighted that "manufacturing led the resurgence with notable rebounds in rates of increase for output and sales," while goods producers recorded faster increases in both output and new orders compared to services firms. Services activity also improved, albeit at a more moderate pace. The survey said services companies "still noted accelerations, though they were marginal in comparison" to manufacturing. Commenting on the data, HSBC Chief India Economist Pranjul Bhandari said, "The survey indicated that firms are building buffer stocks to manage the uncertainties around the longevity of the supply-side shock. On the price front, inflationary pressures remained elevated but eased slightly from March levels."

Companies continued to pass on higher costs to customers, with the report noting that "Indian companies lifted their selling prices again at the start of the first fiscal quarter," even as output price inflation remained below input cost increases. Employment trends were positive, with hiring picking up across sectors. The survey indicated that the rate of job creation reached a ten-month high in April, driven by rising business requirements, expansion plans and upbeat year-ahead forecasts.

Looking ahead, firms remain optimistic about growth prospects, supported by marketing efforts, pending projects and rising client enquiries, although overall confidence dipped slightly from March.

- ANI

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Reader Comments

R
Rahul R
Good to see the PMI numbers improving. However, the report also mentions companies are passing on higher costs to customers. As a consumer, I'm already feeling the pinch. Growth is important, but not at the cost of high inflation for the common man.
A
Aman W
The pickup in hiring to a ten-month high is the most encouraging part. If this trend holds, it will boost household incomes and consumption. Make in India seems to be working on the ground!
S
Sarah B
Reading this from an investment perspective. The resilience of the Indian economy, bouncing back from global headwinds like the Middle East situation, is impressive. The focus on technology investments is key for long-term competitiveness.
K
Karthik V
Solid numbers to start the new financial year. Hope the government uses this positive sentiment to push through more reforms, especially in logistics and ease of doing business for smaller MSMEs. They are the real engine.
M
Meera T
While manufacturing is strong, services growth being 'marginal in comparison' is a bit concerning. We need both pillars to be strong. The IT sector has been soft lately, hope it picks up soon.

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