A strong growth in India’s manufacturing and services sector in April- HSBC report | India’s manufacturing and service sector records growth in April
New Delhi:
According to HSBC data, due to the boom in manufacturing output and services business activity, there was a strong growth in India’s Composite Flash Purchasing Manager Index (PMI) in April. The report released on Wednesday said that it stood at 60 points in April, which is more than the march despite trade uncertainty. The figure of 50 on PMI separates expansion and contraction.
During this month, the new export order increased rapidly, which was associated with the ’90-day brake’ on the US tariff, while the speed of expansion was slightly faster for the manufacturers, the increase in the new export business of services was equally effective. At the overall level, the new export order has increased at the fastest pace since the introduction of the series.
According to the report, some panelists credited this to ‘better competition’ due to the depreciation of the rupee against the US dollar. The margin also improved during the month as the cost inflation was in line with the march level, but prices rose a bit rapidly.
The HSBC report said, “Our framework of 100 indicators of development suggests that the March quarter is better than the previous two quarters, but is far below June 2024.” After harvesting, the development of rural demand and monetary policy is likely to support development, although the report states that once the restocking demand is reduced, the goods export will decrease. It also states that in FY 2026, India’s GDP growth rate can be affected by 0.5 percentage points due to ‘Trump Tariff’.
The HSBC report said, “RBI has already started a cycle of cuts cuts. It has cut 50 basis points and we hope that each of the next three quarters will cut 25 basis points, which will be 5.25 percent by the end of 2025. In addition, we hope that the status of easy liquidity will be helped.
(This news has not been edited by the NDTV team. It has been published directly from the syndicate feed.)
