New Delhi [India], May 6 (ANI) — India’s services sector regained strength in April following a brief slowdown in March, according to the latest HSBC Services Purchasing Managers’ Index (PMI) released by S&P Global.
The seasonally adjusted HSBC India Services PMI® Business Activity Index rose to 58.7 in April, up slightly from 58.5 in March. This marks a strong and accelerated expansion in business activity. The April figure also surpasses the long-term average of 54.2.
“After experiencing a slowdown in March, growth of business activity in the Indian service sector accelerated slightly in April,” the report noted. “This regained momentum was largely driven by a quicker increase in new order inflows, which also underpinned a faster expansion in employment.”
S&P Global indicated that the improvement in services activity was primarily fueled by a significant increase in new business orders—one of the strongest growth rates recorded over the past eight months.
Many firms credited favorable market conditions and effective marketing strategies for the uptick in new work. Others pointed to operational efficiencies that enabled them to handle greater volumes of business.
On pricing, the data showed that average selling prices increased at a faster pace, even as input cost pressures eased to their lowest level in six months.
International demand also contributed to the sector’s gains. Companies reported growing interest in Indian services from Asia, Europe, the Middle East, and the United States. As a result, new export orders expanded at the fastest rate since July 2024.
The increase in demand led service providers to continue expanding their workforces. April marked the thirty-fifth consecutive month of job creation in the sector. The hiring rate also exceeded that of March, reflecting continued confidence in sustained demand.
However, the growth in business volume placed additional pressure on capacity. A noticeable rise in unfinished work suggested that many companies were operating near their limits.
Overall, April’s PMI data highlights renewed momentum in India’s services economy, bolstered by strong domestic and international demand and supported by ongoing job growth.
(ANI)
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