India services momentum cools to 14-month low
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New Delhi: India’s services sector remained in expansion mode in March, although growth momentum softened for the second straight month, according to the latest HSBC India Services PMI compiled by S&P Global. The seasonally adjusted Services PMI Business Activity Index eased to 57.5 in March from 58.1 in February, the slowest pace of expansion in 14 months. A reading above 50 indicates growth.
The moderation was largely driven by softer domestic demand, with new business intakes rising at the weakest pace since January 2025. However, international demand remained robust, with export orders expanding at one of the fastest rates since mid-2024, supported by demand from Africa, Asia, Europe, the Americas and the Middle East.
Despite the slowdown in new business, firms remained optimistic about future activity, with sentiment hitting near a 12-year high, aided by expectations of improved demand, advertising efforts and better customer engagement.
Employment growth strengthened for the third consecutive month and rose at the fastest pace since mid-2025, reflecting improved business confidence. On the price front, cost pressures intensified sharply. Input cost inflation surged to its highest level since June 2022, driven by rising expenses for fuel, transport, food items and labour.
