India's April Private Sector Growth Shrugs Off War Fears; HSBC Flash PMI Hits 58.3 as Hiring Rises
India’s private sector growth accelerated in April with the HSBC Flash Composite PMI hitting 58.3. Manufacturing led the rebound despite Middle East war tensions and Hormuz-driven fuel shortages. While business confidence dipped, job creation reached a 10-month high as domestic demand stayed robust.
Growth in India's private sector accelerated in April as manufacturing and services activity rebounded after cooling last month despite elevated price pressures, a survey showed.
The bounce-back signals a recovery in domestic demand at the start of the new fiscal year but uncertainty remains due to the Middle East war. The International Monetary Fund recently pegged India’s growth at 6.5% but warned inflationary risks could dampen the high-octane expansion seen in recent years.
HSBC's flash India Composite Purchasing Managers' Index (PMI), compiled by S&P Global, climbed to 58.3 in April from March's final reading of 57.0. The data has been above the 50-mark separating growth from contraction for nearly five years.
The improvement was led by manufacturing with the PMI bouncing to 55.9 from 53.9, while the output index jumped to 59.1 from 55.7. Services activity also strengthened, though at a more modest pace, with the business activity index edging up to 57.9 from 57.5.
Firms reported stronger demand with overall new orders increasing at a faster pace and remaining historically strong.
Export trends were mixed. Manufacturers posted the fastest growth in export business in nine months, while services firms recorded the weakest increase in over a year, which respondents in the survey linked to the Middle East war. At the composite level, new export business rose at a softer pace than in March.
Input cost inflation eased from March but was the second-steepest in nearly three years with firms citing higher prices for fuel and raw materials. Companies continued to raise selling prices, though output price inflation remained below the pace of input cost increases.
India, the world's second-largest liquefied petroleum gas importer, is grappling with a severe shortage as the war has effectively choked the Strait of Hormuz. The government has already moved to prioritize household supply over industrial requirements, a move that could hurt businesses.
Overall business confidence slipped from March. However, employment rose at the fastest pace in 10 months.
Reporting by Anant Chandak Editing by Shri Navaratnam
Published By : Shourya Jha
Published On: 23 April 2026 at 13:01 IST