India Services PMI Slows to 14-Month Low
Analysis based on 24 articles · First reported Apr 06, 2026 · Last updated Apr 06, 2026
The slowdown in India's services sector growth, as indicated by the HSBC India Services PMI, suggests a moderation in economic expansion for India. Rising input costs and the impact of the Middle East conflict could put pressure on corporate margins and consumer spending, despite strong export demand and business optimism.
India's services sector experienced a slowdown in March, with the HSBC India Services PMI Business Activity Index falling to 57.5 from 58.1 in February, marking the weakest expansion in 14 months. This deceleration was primarily driven by softer domestic demand and the sharpest increase in input costs in nearly four years. Factors such as the Middle East conflict were cited for impacting demand, market conditions, and tourism. Despite the overall slowdown, new export orders showed resilience, rising to one of the fastest rates on record, with gains across various regions. Employment in the services sector continued to grow for the third consecutive month, reaching its strongest pace since mid-2025, and business confidence surged to a nearly 12-year high, reflecting optimism about future demand and market recovery. However, the composite PMI, which includes manufacturing, also declined, indicating the weakest overall private sector expansion in nearly three-and-a-half years for India.
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