90-Day Tariff-Pause Gives Rise To India's New Export Orders In April

New Delhi: April sees unprecedented growth of new export orders buoyed by the 90-day pause in the implementation of tariffs imposed by the Trump administration, HSBC Flash India PMI said.

Private sector companies in India welcomed a sharp rise in total new business intakes at the start of the 2025-26 fiscal year, which was boosted by buoyant international demand for goods and services.

Collectively, new export orders increased at the fastest pace since the series started in September 2014 as survey participants noted gains from across the globe.

The HSBC 'flash' PMI® data also showed quicker expansions in aggregate output and employment. Cost pressures were equal to those seen in March, whereas selling charges rose at a faster rate.

Rising from a final reading of 59.5 in March to 60.0 in April, the HSBC Flash India Composite Output Index - a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors - highlighted the fastest rate of expansion since August 2024.

Pranjul Bhandari, Chief India Economist at HSBC, said: "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. Cost inflation was in line with March levels, but prices charged rose a tad faster, leading to improved margins."

Companies operating in India's private sector suggested that output levels had been raised in response to efficiency gains, positive demand trends and successful advertising.

Some panellists also reported an improvement in international competitiveness as a result of the rupee's depreciation against the US dollar.

Indeed, private sector firms noted a record increase in new export orders during April amid healthy demand from Africa, Asia, Europe, the Middle East and the Americas. Goods producers saw a stronger rate of expansion than service providers, and one that was the most pronounced in over 15 years.

Aggregate sales increased at a sharp pace that was the fastest since August 2024. Once again, manufacturing companies registered a quicker upturn in new business than their services counterparts.

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