March. This uptick was driven by a surge in export demand and increased production output. Notably, companies raised selling prices at the fastest rate in over 11 years, reflecting strong pricing power amid heightened demand.
Services Sector: Sustained Momentum
The services sector also demonstrated resilience, with the PMI increasing to 58.7 in April from 58.5 in March. This growth was underpinned by a significant rise in new business intakes and a notable acceleration in export orders, which expanded at the fastest pace since July 2024. Finance and insurance emerged as the strongest-performing sub-sectors, recording the highest growth rates for both output and new orders.
Composite PMI: Indicating Broad-Based Expansion
The HSBC India Composite PMI, which combines both manufacturing and services data, rose to 59.7 in April from 59.5 in March. This marks the strongest expansion in private sector activity since August 2024, highlighting the broad-based nature of India's economic growth.
Global Comparison: Outpacing Major Economies
India's PMI figures outperformed those of major economies. For instance, China's manufacturing PMI stood at 50.4, and its services PMI at 50.7, while the U.S. reported a manufacturing PMI of 48.7 and services PMI of 51.6. The Eurozone continued to struggle, with April's manufacturing PMI at 49 and services at 50.1. These comparisons underscore India's relative strength in both manufacturing and services sectors.
Outlook: Sustaining the Growth Trajectory
India's strong PMI readings reflect robust domestic demand, effective marketing strategies, and favorable international trade conditions. However, to sustain this growth trajectory, it is essential to address challenges such as rising competition and to continue investing in infrastructure, regulatory reforms, and skill development.
