India’s services sector regained momentum in April after a brief slowdown in March, according to the latest HSBC Services PMI data released by S&P Global.
The seasonally adjusted HSBC India Services PMI Business Activity Index rose to 58.7 in April, up from 58.5 in March, indicating a sharp and stronger expansion in business activity. The latest reading is also well above the long-run average of 54.2.
“After experiencing a slowdown in March, growth of business activity in the Indian service sector accelerated slightly in April. This regained momentum was largely driven by a quicker increase in new order inflows, which also underpinned a faster expansion in employment,” the report stated.
S&P Global noted that the improvement in services activity was largely fuelled by a strong rise in new business orders—one of the most robust increases in the past eight months. Many firms attributed this to favourable market conditions and effective marketing strategies. Some also cited improved operational efficiency as a factor in handling greater workloads.
On the pricing front, average charges increased at a quicker pace, even as cost pressures eased to a six-month low.
International demand also contributed significantly to the sector’s performance. Firms reported stronger interest for Indian services from regions such as Asia, Europe, the Middle East, and the United States, resulting in the fastest rise in export orders since July 2024.
The surge in new work prompted companies to expand their workforce. April marked the thirty-fifth consecutive month of job creation in the services sector. The rate of hiring was also faster than in March, reflecting growing confidence in sustained demand.
However, with the rise in business volumes, pressure on capacity also increased. A solid rise in unfinished work indicated that many firms were operating close to their full potential.
Overall, April’s PMI data signals renewed strength in India’s services sector, supported by rising domestic and global demand, consistent job creation, and improving operational resilience.
-ANI
