India Services PMI Hits 2-Month High
Analysis based on 10 articles · First reported Feb 04, 2026 · Last updated Feb 04, 2026
The strong growth in India's services sector, as indicated by the HSBC India Services PMI, suggests positive economic momentum for India, potentially leading to increased investor confidence and foreign investment. The rise in employment and business confidence could also signal a robust domestic market, benefiting various industries.
India's services sector experienced significant growth in January 2026, with the HSBC India Services PMI Business Activity Index rising to a two-month high of 58.5 from 58.0 in December. This expansion was primarily driven by increased new business intake, robust output growth, and ongoing technology investments. The domestic market was the main source of new business, complemented by solid international orders from countries like Indonesia, Kenya, Malaysia, Oman, Qatar, Sri Lanka, Thailand, and Vietnam. Service providers in India expressed higher optimism for the future, leading to increased hiring across the private sector. The HSBC India Composite PMI Output Index also strengthened to 58.4, reflecting solid demand in both manufacturing and services. While input costs and selling charges saw moderate increases, business confidence climbed to a three-month high, supported by efficiency gains and client acquisition. Pranjul Bhandari, Chief India Economist at HSBC, highlighted the sustained momentum and positive outlook for the sector.
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