India's private sector activity accelerated in April, with the Composite Purchasing Managers' Index (PMI) rising to 58.3, up from 57.0 in March. This marks nearly five years of expansion above the 50-mark. The manufacturing sector led the growth, with its PMI climbing to 55.9 and output index increasing to 59.1. Services also saw a modest uptick, with the business activity index reaching 57.9. Despite disruptions from the ongoing conflict in the Middle East, which has raised oil prices and caused supply chain issues, domestic demand remains resilient. Companies reported stronger demand and new orders, although export trends were mixed, with manufacturers experiencing the fastest growth in overseas orders in nine months, while services firms noted the weakest increase in over a year. Input cost inflation remains high, prompting firms to pass on some costs to consumers. Employment rose at the fastest pace in 10 months, indicating confidence in future growth, even as overall business confidence dipped due to uncertainties surrounding energy supplies. The International Monetary Fund has projected India's growth at 6.5% for the fiscal year 2027, but cautioned about inflationary risks if energy prices remain elevated.