India's Private Sector Expansion Hits Eight-Month High

India's private sector expansion reached an eight-month high in April, fueled by strong demand and a notable surge in foreign orders for manufactured goods, according to the HSBC Flash India Composite Purchasing Managers' Index (PMI), compiled by S&P Global.

Manufacturing and Services Show Robust Growth

The Composite PMI rose to 60.0 in April from 59.5 in March, marking the strongest growth in combined manufacturing and services activity since August. A reading above 50 signals expansion.

The manufacturing sector showed particularly strong momentum, with its PMI climbing to 58.4, up from 58.1, reaching a one-year high. The services sector also maintained solid growth, with its PMI increasing to 59.1 from 58.5, the highest level in four months.

Record Increase in New Export Orders

Private sector firms noted a record increase in new export orders during April amid healthy demand from Africa, Asia, Europe, the Middle East and the Americas. Goods producers saw a stronger rate of expansion than service providers, and one that was the most pronounced in over 15 years.

This upswing was driven largely by increased business in the services sector and a significant rise in goods production and new orders, especially from international markets.

Strengthening Position as a Global Manufacturing Hub

India's strengthening position as an alternative global manufacturing hub—especially as China grapples with higher US duties—has contributed to this surge in external demand. In response, both manufacturers and service providers increased output and hiring, with manufacturing employment rising to its highest level since March 2005.