India’s private sector growth accelerates in April, with PMI rising to 58.3.
Manufacturing leads expansion, with stronger output and new orders.
Cost pressures remain elevated due to fuel and input prices.
India’s private sector activity accelerated in April, supported by stronger demand and a rebound in manufacturing output, according to the HSBC Flash India PMI data compiled by S&P Global.
The Composite PMI Output Index rose to 58.3 in April, up from 57.0 in March, indicating a faster pace of expansion at the start of the new financial year.
1 April 2026
Get the latest issue of Outlook Business
The improvement followed a slowdown in March linked to disruptions from the West Asia conflict. Survey respondents said activity was supported by increased capacity, higher new orders and continued investment in technology.
Manufacturing Drives Growth
Manufacturing led the upturn, with output and new orders increasing at a stronger pace. The Manufacturing PMI rose to 55.9, while the Manufacturing Output Index climbed to 59.1, both higher than March levels.
Services activity also expanded, though at a slower pace, with the Services Business Activity Index at 57.9 in April.
Export demand showed mixed trends. Manufacturing firms recorded faster growth in overseas orders, while services companies saw a moderation, partly attributed to the impact of the Middle East conflict.
"Private sector activity accelerated after easing in March amid disruptions linked to the West Asia conflict. Manufacturing led the upturn, with faster growth in output and new orders. The survey indicated that firms are building buffer stocks to manage the uncertainties around the longevity of the supply-side shock. Finished goods and input inventories increased alongside a pick-up in purchasing volumes. Input cost pressures remained elevated, and firms passed through part of the increase via higher selling prices," said Pranjul Bhandari, Chief India Economist at HSBC.
Inflation Remains Elevated
Cost pressures remained high during the month, driven by rising prices of fuel, raw materials and transport. Input cost inflation eased slightly from March but was still among the highest levels seen in nearly three years.
Companies continued to pass on part of these costs to customers through higher selling prices, though increases in output charges were less pronounced than input cost growth.
Hiring and Outlook
Employment increased across the private sector, with job creation reaching a ten-month high as firms expanded capacity and responded to rising business requirements.
Businesses remained optimistic about future activity, supported by expectations of improved demand and ongoing projects, although overall confidence eased slightly compared with March.
Manufacturers also increased inventories of inputs and finished goods, indicating efforts to build buffer stocks amid ongoing supply-side uncertainties.
