The Aryavarth Express
Agency(BENGALURU): India’s business sector has shown remarkable growth, reaching its fastest pace in nearly 14 years this April, propelled by vigorous demand and robust performance in both manufacturing and services. According to the latest S&P Global survey, the HSBC flash India Composite Purchasing Managers’ Index (PMI) escalated to 62.2 this month from 61.8 in March, signaling a strong upward trend.
This impressive growth streak, consistently above the critical 50-mark that differentiates expansion from contraction since August 2021, positions India well to maintain its status as the fastest growing major economy. The services sector, in particular, recorded significant activity with its PMI climbing to a three-month high of 61.7, driven by accelerated new business orders.
Manufacturing also held steady with a PMI of 59.1, indicating sustained growth in output and new orders, though the pace moderated slightly compared to the previous month. The combined robustness in both sectors contributed to the highest composite output index observed since June 2010.
Employment trends were also positive, especially in manufacturing where job growth hit an 18-month high, although services saw a slight slowdown in hiring compared to March. On the inflation front, while input costs have cooled slightly for both sectors, strong demand has allowed firms to pass on higher costs to customers, suggesting sustained pressure on prices.
Economists, including HSBC’s chief India economist Pranjul Bhandari, suggest that the ongoing strength in demand and subsequent price adjustments mean that inflation is likely to remain above the Reserve Bank of India’s 4% medium-term target for some time, delaying potential rate cuts.
This period of growth, marked by high demand and employment gains, provides a solid foundation for India’s economic projections, although it continues to pose challenges for inflation management.