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India Composite PMI hits 8-month high in April

23 Apr 2025 Evaluate

The HSBC Flash India PMI report has showed that India's private sector growth hit an eight-month high in the month of April on the back of buoyant international demand for goods and services. The HSBC Flash India Composite Output Index -- a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors -- surged to 60.0 in April from a final reading of 59.5 in March. However, the HSBC Flash India Manufacturing PMI index also rose to 58.4 in April from 58.1 in March.

According to the report, aggregate sales increased at a sharp pace that was the fastest since August 2024. Once again, manufacturing companies registered a quicker upturn in new business than their services counterparts. Robust intakes of new work exerted upward pressure on the capacity of Indian companies, who observed the fastest rise in outstanding business volumes since August 2022. There were quicker increases in backlogs across both the manufacturing and services economies.

In response to an intensification of capacity pressures, companies remained in hiring mode. Rates of job creation were equal at goods producers and service providers. On the price front, input prices continued to increase across the Indian private sector, but the rate of inflation matched that seen in March and remained below its long-run average. As a result of ongoing increases in cost burdens, private sector firms continued to lift their selling prices. April's rise was marked, faster than in March and stronger than seen on average across the survey history. 


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