More Stories

Informist, Monday, Apr. 6, 2026

 

--India Mar services PMI 57.5 vs 58.1 in Feb

--India Mar composite PMI 57.0 vs 58.9 in Feb

--India Mar services PMI 57.5, lowest in 14 months

--India Mar composite PMI 57.0, lowest since Nov 2022

 

NEW DELHI/MUMBAI – India's services sector activity in March expanded at the slowest pace in 14 months as demand weakened on the back of the US-Israel war on Iran, S&P Global said Monday. A rise in input costs and higher prices charged by service providers also weighed on demand.

 

The HSBC India Services Purchasing Managers' Index fell to 57.5 in March, the lowest since January 2025, from 58.1 in February. At 57.5, the final services purchasing managers' index for March was a tad above the flash estimate of 57.2 that was released Mar. 24. A purchasing managers' index reading of more than 50 denotes expansion in activity from the previous month, while a print below 50 indicates contraction.

 

The headline figure for PMI services sector remained above its long-run average of 54.4, S&P Global, which compiles the purchasing managers' indices, said in a release. "While new business gains continued to underpin growth, according to panellists, output was constrained by the detrimental impact of the Middle East war on demand, market conditions and tourism," S&P Global said.

 

The composite purchasing managers' index fell to 57.0 in March, the lowest since November 2022, from 58.9 in the previous month, growth momentum moderating for the second consecutive month, S&P Global said. Data released Monday showed India's manufacturing purchasing managers' index slipped to a near four-year low of 53.9 in March from 56.9 in February.

 

Despite moderation, demand in the services sector remained resilient, S&P Global said. This was led by new export orders, which rose to the greatest extent since mid-2024, said Pranjul Bhandari, chief India economist at HSBC. "However, input cost inflation accelerated to its fastest pace since 2022, indicating that higher fuel, transport and logistics costs are feeding into services," Bhandari said.

 

The overall growth in services exports was near a record high in March with firms noting gains from Africa, Asia, Australia, Europe, the Americas and West Asia, S&P Global said. 

 

Input prices for services firms during March rose at the fastest pace in nearly four years. Services firms transferred only part of their additional cost burdens to clients with selling charge inflation at a seven-month high, S&P Global said. 

 

The pace of job creation was solid in March and the highest since mid-2025. "Boosting employment growth was a pick-up in business confidence. Firms were at their most upbeat towards the outlook for output in close to 12 years. Optimism was pinned on hopes of an improvement in demand and market conditions," S&P Global said. "Advertising and better customer relations were also expected to bear fruit."  End

 

Reported by Shweta and Shubham Rana

Edited by Akul Nishant Akhoury

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.