India Services Sector Growth Accelerates

The HSBC India Services PMI was revised higher to 58.8 in April 2026 from the preliminary estimate of 57.9, following March’s 13-month low of 57.5. The latest reading marked the strongest growth since last November, supported by a faster rise in new orders and output. However, foreign demand growth eased to the weakest pace in five months, due to the Middle East war and subdued inbound tourism. Employment increased, enabling firms to reduce backlogs of work for the first time in four months, though only marginally. On prices, both input and output inflation eased, although input price inflation remained among the highest in around a year and a half. Meanwhile, output prices rose moderately, marking the weakest increase in three months. Looking ahead, business sentiment weakened amid concerns over the Middle East conflict and cost pressures.

The HSBC India Services PMI increased to 57.9 in April 2026 from March’s 13-month low of 57.5, signaling continued solid expansion in the services sector, preliminary estimates showed. Output and new orders continued to rise, albeit marginally. However, foreign demand growth eased to the weakest uptick in just over a year, due to the Middle East war. Employment increased, with job creation rising at a faster pace. On prices, both input and output inflation slowed. Looking ahead, business sentiment weakened amid concerns over the Middle East conflict.

The HSBC India Services PMI was revised higher to 57.5 in March 2026 from 57.2 in the preliminary estimate and above expectations of 57.4, signaling a slower yet still solid expansion in the services sector. However, the latest reading marked the weakest growth since January 2025 and was below February’s 58.1, although demand remained resilient, led by new export orders, which rose at the fastest pace since mid-2024. While new business gains continued to drive growth, output was constrained by the impact of the Middle East war on demand and tourism. Employment increased, with job creation rising at the fastest pace since mid-2025. On prices, input price inflation accelerated to near its highest level in almost four years, driven by higher costs for chicken, cooking oil, eggs, electricity, fish, fruits, fuel, labor, meat, and vegetables. As a result, output price inflation rose to its highest level in seven months. Lastly, sentiment strengthened, alongside continued gains in employment.