India’s business activity booms in April

Indian businesses are seeing a significant increase in activity, with the fastest growth in almost 14 years recorded this month, according to a survey by HSBC, reported by Reuters on Tuesday.

The survey shows a positive outlook driven by strong demand, lower input inflation, and job creation, as per the statement.

The HSBC flash India Composite Purchasing Managers’ Index (PMI) rose to 62.2, surpassing March’s 61.8 and marking the strongest performance since June 2010.

This positive trend applies to both manufacturing and service sectors, driven by a rise in new orders.

“Strong performance in both the manufacturing and service sectors, led by increased new orders, resulted in the highest composite output index since June 2010,” noted Pranjul Bhandari, chief India economist at HSBC.

The service sector led the expansion, with its PMI climbing to a three-month high of 61.7. This growth is attributed to accelerating new business activity, a key indicator of demand.

The manufacturing PMI remained steady at 59.1, with output and new orders for goods continuing to expand at a healthy pace, albeit slightly slower than last month.