India Services PMI Eases To 57.5 In March, Growth Slows Amid Middle East Tensions

New Delhi: India’s services sector continued to expand in March, supported by strong international orders and rising business confidence even as domestic new‑business growth eased, a report said on Monday. The HSBC India Services PMI report compiled by S&P Global said that India Services PMI or the headline figure remained above its long‑run average of 54.4. The seasonally adjusted HSBC India Services PMI Business Activity Index eased from 58.1 in February to 57.5 in March.

Firms reported increased job creation at the fastest pace since mid‑2025 and the strongest outlook for output in almost 12 years. "While new business gains continued to underpin growth, according to panellists, output was constrained by the detrimental impact of the Middle East war on demand, market conditions and tourism," the report said. Indeed, intakes of new work rose but the pace was softest since January 2025 at the end of the last fiscal quarter.

Softer increases in sales were noted in three of the four broad areas of the service economy, namely Finance & Insurance, Real Estate & Business Services and Transport, Information & Communication. All four categories recorded quicker expansions in new export orders. Subsequently, overall growth in foreign sales neared a series peak, the firm noted. "Output across India's service economy rose at the softest pace in 14 months during March, mirroring the slowdown in growth of new business intakes but comparing with a near‑record expansion in international orders," the report said.

Meanwhile, selling charge inflation quickened to a seven‑month high amid the steepest increase in input costs since June 2022. The slowdown in total new order growth occurred in parallel to a pick‑up in output charge inflation. Prices charged for the provision of Indian services rose to the greatest extent in seven months during March and one that was above the long‑run series average.

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