India’s Business Growth Hits 8-Month High as Exports Boom
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India’s private sector kicked off the new financial year on a strong note, with April marking the fastest pace of growth in eight months. This surge was largely driven by a sharp increase in foreign orders, especially for manufactured goods, according to the HSBC Flash India Composite Purchasing Managers’ Index (PMI) by S&P Global.
The index climbed to 60.0 in April from 59.5 in March, signaling a robust expansion in both manufacturing and services. (A reading above 50 indicates growth.) Manufacturing led the way, hitting a one-year high of 58.4, while the services sector rose to 59.1 — a four-month peak.
The data reflects resilient demand at home and abroad. A notable jump in new export orders, the strongest since records began in September 2014, was a key factor. Analysts suggest this spike may be linked to a temporary 90-day pause in U.S. tariffs announced by President Donald Trump earlier this month, which gave a short-term boost to global trade flows.
Economist Pranjul Bhandari from HSBC noted that India is increasingly being seen as an alternative manufacturing hub to China. With U.S. tariffs making Chinese goods more expensive, India is positioning itself as a competitive choice for global supply chains.
The surge in export demand has had a ripple effect on production and hiring. Both manufacturers and service providers increased output and expanded their workforces. In fact, employment in the manufacturing sector grew at the fastest pace since the survey began in 2005.
While the cost of raw materials and inputs varied — rising in manufacturing but easing in services — strong consumer demand enabled companies to pass on those costs. This led to a sharper increase in selling prices, particularly in manufacturing.
However, not everything was optimistic. Despite the boom in orders, overall business confidence dipped to an eight-month low. Services firms, in particular, appeared cautious about future prospects, perhaps reflecting concerns over geopolitical uncertainties and global economic headwinds.
Nonetheless, April’s data paints a picture of an economy starting the year with solid momentum, powered by exports and expanding job creation.
Team Profile
- News Writer
- Saksham Mehta is a journalism graduate from Delhi University and a PGD student in Digital Media at IIMC New Delhi. Passionate about storytelling and news, he is a published author with Zee business. With a keen interest in analytical reporting, digital media, and financial journalism. Saksham is dedicated to making an impact in the evolving world of news and storytelling.
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