Private sector activity rises to 8-month high of 60 in April

PMI data for April

India’s private sector activity rose to an eight-month high of 60 in April, up from 59.5 in the previous month, marking a strong start to the new fiscal, according to a private survey released on April 23.

The HSBC Flash India Composite PMI stayed above the 59-mark for the second consecutive month after coming in below that number in January and February.

"New export orders accelerated sharply, likely buoyed by the 90-day pause in the implementation of tariffs. As a result, output and employment grew, for both, manufacturers and service providers," said Pranjul Bhandari, chief India economist, HSBC.

She was referring to the Trump administration's decision to pause the so-called reciprocal tariffs against US’ trading partners for 90 days.

The Composite Purchasing Managers Index (PMI) is a weighted average of comparable manufacturing and services indices.

Rising trade tensions and global uncertainty are weighing on economic activity.

The International Monetary Fund (IMF) on April 22 pegged the global economic growth nearly a percentage point lower from 2024, with the US dropping a percentage point from January estimate and China 1.3 percentage points.

India is likely to be shielded, with domestic demand providing support.

The IMF trimmed India’s FY26 growth forecast to 6.2 percent from 6.5 percent estimated earlier. It also projected a slower 6.3 percent growth in FY27.