India's Private Sector Sees Strong Growth as Export Orders Surge in April

Image Source : Manish Marwah

India's private sector kicked off the fiscal year on a strong note, driven by a sharp rise in new export orders. According to the HSBC Flash India Composite Purchasing Managers' Index (PMI), the index climbed to 60 in April from 59.5 in March, marking the fastest rate of expansion since August 2024.

The surge in export orders was largely attributed to the 90-day pause in the implementation of tariffs, which boosted international demand for Indian goods and services. Companies across manufacturing and services sectors reported increased business activity, with manufacturing witnessing the sharper upturn.

The report highlighted that firms raised output levels in response to efficiency gains, positive demand trends, and successful advertising efforts. Additionally, an improvement in international competitiveness was noted due to the rupee's depreciation against the US dollar.

Notable Trends:

HSBC Flash India Composite PMI rose to 60 in April, up from 59.5 in March.
Export orders increased at the fastest pace since the survey began in September 2014.
Manufacturing sector recorded its strongest improvement in a year, with PMI rising to 58.4.
Companies reported higher output and employment growth across sectors.
Cost inflation remained steady, but selling prices saw a slight increase, improving margins.

Source: BusinessWorld, The Hindu BusinessLine, News18.