2 weeks Ago By Moneycontrol
India’s private sector activity started the fiscal year on a strong footing, with the Purchasing Managers’ Index rising to an eight-month high of 60 from 59.5 in the previous month, according to data released by HSBC on April 23. "New export orders accelerated sharply, likely buoyed by the 90-day pause in the implementation of tariffs.
As a result, output and employment grew, for both, manufacturers and service providers," said Pranjul Bhandari, chief India economist, HSBC. The HSBC Flash India Composite PMI stayed above 59 mark for the second consecutive month after staying below that number for two consecutive months in January and February. Rising trade tensions and global uncertainty is having a bearing on economic activity.
Forecasts released by IMF on April 22, pegged the global economy to grow nearly a percentage point slower compared with 2024, with US growth dropping a percentage point from January estimate and China suffering a 1.3 percentage point dip in forecast. However, India is likely to be shielded with domestic demand providing support.
IMF cut India’s growth forecast by a lower quantum to 6.2 percent for FY26 from 6.5 percent estimated earlier.
It also projected a slower 6.3 percent growth in FY27..
