India Services PMI Rises to 58.5 in January

India's services sector experienced a significant rebound in January, 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 driven by a steady influx of new domestic and international orders, particularly from South and Southeast Asia, including countries like Indonesia, Kenya, Malaysia, Oman, Qatar, Sri Lanka, Thailand, and Vietnam. Business confidence also climbed to a three-month high, supported by efficiency gains, effective marketing, and new client acquisitions. While input costs and selling charges increased, they remained moderate by historical standards. The composite PMI, which includes manufacturing, also strengthened. This positive trend led to a resumption of job creation in the private sector after stagnation in December. The growth comes amidst recent trade developments, including India's trade deal with the European Union and the United States' agreement to reduce tariffs on Indian goods, which are expected to further support export growth.