India's PMI Shows Strong Growth
Analysis based on 40 articles · First reported Apr 23, 2026 · Last updated May 07, 2026
The strong performance of India's services and manufacturing sectors, as indicated by the HSBC PMI data, suggests a positive outlook for the Indian economy, potentially boosting investor confidence in India. However, persistent inflation pressures and the impact of the Middle East conflict on export demand and input costs could temper some of this optimism.
India's services sector activity reached a five-month high in April, with the HSBC India Services PMI Business Activity Index rising to 58.8, driven by robust domestic demand. Concurrently, the manufacturing PMI also saw a mild recovery, increasing to 54.7. This overall private sector growth, as reflected in the HSBC India Composite PMI Output Index rising to 58.2, indicates continued resilience in the Indian economy. However, the conflict in the Middle East has exerted upward pressure on inflation, leading to higher input costs and output charges, and has also softened international demand for Indian services. Despite these cost pressures, firms are optimistic about future growth, and job creation has accelerated to a 10-month high.
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