India Services PMI Moderates in February
Analysis based on 7 articles · First reported Mar 04, 2026 · Last updated Mar 05, 2026
The moderation in India's services sector growth, coupled with accelerating inflation, could lead to concerns about the country's economic momentum. However, the strong international sales and overall private sector activity suggest resilience, potentially offsetting some negative sentiment.
India's services sector growth moderated slightly in February, with the HSBC India Services PMI Business Activity Index easing to 58.1 from 58.5 in January. This slowdown was primarily due to new order growth hitting a 13-month low amid increased competition and a pick-up in inflation. Operating expenses rose at the sharpest rate in two-and-a-half years, driven by higher food and labor costs, leading firms to raise prices at the fastest pace in six months. Despite these pressures, international sales expanded at the quickest pace since August, with demand from countries like Canada, Germany, mainland China, Singapore, the United Arab Emirates, the United Kingdom, and the United States. Business confidence also rose to a one-year high as companies looked to broaden their market presence. Overall private sector activity, as measured by the HSBC India Composite PMI Output Index, strengthened to 58.9, marking the fastest pace in three months, supported by robust manufacturing growth and accelerated job creation.
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