India’s economic activity continued to expand in April, driven by strength in both the services and manufacturing sectors, according to a flash survey by HSBC Holdings.

The services purchasing managers’ index rose to 61.7 from 61.2 in March, while the manufacturing purchasing managers’ index remained unchanged at 59.1. That drove the composite index to 62.2, the highest reading since June 2010.

The indexes are based on preliminary survey results and the final PMI data will be published next week. A reading above 50 indicates expansion compared with the previous month, while a print below that indicates contraction in activity.

Services growth accelerated in April as new orders rose in domestic and international markets, Pranjul Bhandari, chief India economist at HSBC, said in a statement. Manufacturing margins also showed improvement as firms were able to pass on higher prices to customers due to strong demand conditions, she said. 

“Overall future business outlook improved further in April, buoyed by robust demand,” Bhandari said. 

India’s economy is set to grow more than 7 per cent in the current fiscal year, making it the fastest-expanding major economy in the world. Strong growth has also given the central bank space to focus on price stability. The central bank stuck to its hawkish policy stance earlier this month and kept the benchmark rate unchanged for the seventh straight meeting.

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Rising demand supported further job creation at the start of the fiscal year. While service providers took on extra staff at a marginal pace that was softer than in March, goods producers raised workforces to the greatest extent in nearly a year-and-a-half, HSBC said. BLOOMBERG