India Composite PMI Revised Higher

India’s HSBC Composite PMI registered 58.2 in April 2026, just shy of the flash estimate of 58.3 but higher than 57.0 in the previous month, pointing to a sustained and historically strong expansion in private sector activity. Growth remained broad-based, with both manufacturing output and services activity rising at solid rates. Total new orders rose at a faster pace, exceeding the long-run average and signaling resilient demand conditions. On the price front, manufacturing companies continued to face greater cost pressures, reporting sharp increases in both input costs and output charges compared to the services sector. In terms of prices, input cost inflation eased from March but still marked the second-highest reading since August 2023, suggesting persistent underlying cost pressures. Meanwhile, output price inflation softened, with firms raising selling prices at the slowest pace in three months.

The HSBC India Composite PMI rose to 58.3 in April 2026 from a final 57.0 in the pevious month, which had marked the lowest level since late 2022, amid disruptions linked to the Middle East conflict. Flash estimates signaled a strong pace of private-sector expansion, staying well above its long-run average. Growth was driven by faster manufacturing output, while services activity continued to expand robustly. New orders accelerated at a historically strong pace. Employment rose the most in ten months, with hiring picking up across both manufacturing and services firms. However, growth in new export business softened. On prices, input cost inflation was the second-steepest in nearly three years, driven by higher fuel, gas, oil, and raw material costs. Output price inflation remained elevated but was well below the pace of input cost increases. Finally, business confidence eased from March’s level but remained the second-highest in almost 1-1/2 years.

The HSBC India Composite PMI was revised up to 57.0 in March 2026 from a flash estimate of 56.5, but eased from 59.9 in the previous month, marking the weakest reading since November 2022. Growth remained driven by services, while manufacturing expanded at a softer pace, with both sectors showing moderation. Total new orders rose at the slowest rate since November 2023, signaling some cooling in domestic demand, even as export orders increased at the fastest pace in seven months. Cost pressures intensified to their highest level in nearly four years. However, pricing trends diverged: service providers raised selling prices more aggressively, while manufacturers recorded the weakest increase in output charges in two years. At the composite level, overall inflation remained broadly stable compared to February.