Indian Private Sector Growth Strongest In 8 Months

(RTTNews) - India's private sector activity expanded at the quickest pace in eight months, spurred by strong foreign demand for goods and services, flash data compiled by S&P Global showed on Wednesday.

The HSBC composite output index rose to 60.0 in April from 59.5 in March. A score above 50.0 indicates expansion.

The survey revealed that there were quicker increases across both the manufacturing and service sectors, with the former seeing the sharper upturn.

The manufacturing PMI rose to 58.4 in April from 58.1 in the previous month, indicating the strongest improvement in the health of the sector for one year.

Services activity also showed a faster upturn in April, with the services PMI rising to 59.1 in April from 58.5 in March.

Private sector output grew in April in response to efficiency gains, positive demand trends, and successful advertising.

New export orders rose at a sharper pace in April, likely buoyed by the 90-day pause in the implementation of tariffs and healthy demand from Africa, Asia, Europe, the Middle East, and the Americas.

Strong inflows of new business put upward pressure on Indian companies' capacity, resulting in the fastest increase in outstanding business volumes since August 2022.

As a result, companies raised their hiring activity, with the rate of job creation being equal at goods producers and service providers.

On the price front, input prices continue to rise in April amid higher costs for chemicals, freight, labor, leather, rubber, and steel. Consequently, firms lifted their selling prices markedly, and manufacturers led the upturn with the steepest rate of inflation in over 12 years.

Looking ahead, firms remained overall upbeat about output expectations, though the degree of positivity was at its weakest for eight months amid headwinds of competition and inflation.