India Private Sector Growth Remains Strong In March

(RTTNews) - India's private sector activity continued to expand strongly in March on the back of robust expansions in new business intakes and output, flash data compiled by S&P Global showed on Monday.

The HSBC composite output index dropped to 58.6 in March from 58.8 in February. However, a score above 50.0 indicates expansion.

Manufacturing was March's brighter spot, posting quicker increases in sales and output that were faster than those registered in the service economy, the survey said.

The manufacturing Purchasing Managers' Index climbed to 57.6 from 56.3 in the previous month. Further, factory production rose at the quickest pace since July 2024. Meanwhile, the services PMI decreased to 57.7 from 59.0 a month ago.

The growth in new orders received by Indian private sector companies remained sharp despite easing since February. Order book volumes at Indian private sector companies continued to be supported by international sales as the rise in new export business remained marked.

Companies added additional workforce numbers amid higher workloads and in order to fulfill rising demand needs. The pace of job creation was solid but the slowest in six months. For the first time in seven months, manufacturers signaled a faster increase in headcounts than service providers.

On the price front, input prices showed a further increase in March, linked to higher costs for copper, electronics, leather, medical equipment, rubber, and vehicle spare parts. Selling price inflation was contained due to competitive pressures.

Looking ahead, business confidence remained strongly positive despite the level of sentiment slipping to a seven-month low. Both manufacturers and service providers were slightly less upbeat towards output prospects than in February.