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 (PMI) 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 leads growth, services see moderate gains
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.”
Prices, hiring and outlook trends
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.
Published on April 23, 2026