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Private sector growth picks up momentum in April: Flash PMI data

23 Apr 2026 Evaluate

India's private sector activity improved in the month of April, as factories and services sector recovered from March slowdown. New orders and output increased at faster rates for goods producers compared to service providers. According to the data report, the HSBC Flash India Manufacturing PMI surged from 53.9 in March to 55.9 in April, while HSBC Flash India Services PMI Business Activity Index rose to 57.9 in April from March’s final reading of 57.5. Besides, the HSBC Flash India PMI 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 - was up from a final reading of 57.0 in March to 58.3 in April, indicating a sharp rate of growth that was substantial relative to its long-run average.

On the inflation front, private sector companies in India witnessed elevated cost pressures in April as well, on the back of rising fuel, gas, oil and raw material prices. Although below that seen in March, the overall rate of input cost inflation was the second-steepest in close to three years. Indian companies responded to mounting cost burdens by raising selling prices again in April. Although marked and above its trend, the rate of output charge inflation was well below that seen for input costs. 

The report further noted that the rate of job creation across India's private sector reached a ten-month high in April, on account of rising business requirements, expansion plans and upbeat year-ahead forecasts. Hiring growth strengthened at manufacturing firms and their services counterparts, with the quicker upturn among the former. Meanwhile, Indian companies foresee an increase in output over the course of the coming 12 months, with expectations that marketing efforts will support demand for their goods and services, with projects pending approval and rising client enquiries also boosting optimism. The overall level of confidence fell since March, but was the second-highest in nearly a year-and-a-half.

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