India's Business Growth Hits 8-Month High
India's private sector business activity surged to an eight-month high in April 2025, driven by a significant increase in export orders for manufactured goods. The HSBC flash India Composite Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 60.0 from 59.5 in March, indicating the strongest combined growth in manufacturing and services since August 2024.
India's private sector business activity surged to an eight-month high in April 2025, driven by robust manufacturing and services performance, alongside a significant rise in export orders.
Composite PMI: The HSBC Flash India Composite Purchasing Managers'
Index (PMI), compiled by S&P Global, rose to 60.0 in April from 59.5 in March, marking the strongest growth in combined manufacturing and services activity since August 2024. Reuters
Manufacturing Sector: The manufacturing PMI climbed to 58.4, its highest in a year, indicating robust expansion in the sector.
Services Sector: The services PMI reached a four-month peak of 59.1, reflecting strong growth in service activities.
Export Orders: New export orders saw the most substantial increase since 2014, particularly benefiting the manufacturing sector. This surge is partly attributed to a temporary 90-day delay in U.S. tariffs initiated by President Donald Trump.
Employment: The demand surge led to expanded output and job creation across sectors, with manufacturing employment hitting its highest since the survey began in 2005. Reuters
Inflation and Pricing: While input cost inflation varied between sectors, firms managed to pass on costs to clients, leading to higher selling prices. Reuters
Business Confidence: Despite positive developments, overall business confidence declined to an eight-month low due to a more cautious outlook in the services sector.
This uptick in business activity reflects India's economic resilience amid global uncertainties and trade tensions.
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