India's Business Activity Soars to 14-Year High

• 23 Apr 2024

On 23rd April 2024, HSBC survey revealed that India's economy experienced robust expansion, with the fastest pace in nearly 14 years, driven by strong demand, easing input inflation, and positive jobs growth.

Key Points

• Remarkable Expansion: HSBC's survey reveals India's business activity expands at the quickest rate in almost 14 years, indicating strong economic growth prospects.
• Composite PMI:The Composite Purchasing Managers' Index (PMI) rises to 62.2, showcasing robust demand and positive outlook, maintaining expansion streak since August 2021.
• Service Sector Growth: Services activity drives growth, reaching a three-month high with accelerated new business, highlighting increased demand and economic vitality.
• Manufacturing Resilience: Manufacturing PMI remains strong at 59.1, sustaining growth momentum, with both output and new orders growing robustly, contributing to overall economic expansion.
• International Demand: International demand strengthens, leading to the highest composite sub-index since September 2014, reflecting India's position in the global market.
• Jobs Growth: Efforts to meet rising demand fuel jobs growth, notably in manufacturing, while services employment lags behind but remains positive.
• Inflation Outlook: Despite easing input costs, inflation remains a concern, likely to stay above the RBI's target, impacting the central bank's rate cut considerations.