India’s services sector maintained robust momentum in February, with the Purchasing Managers’ Index (PMI) holding steady at 58.1. This key indicator, released by HSBC India Services PMI Business Activity Index, signals continued expansion as readings above 50 denote growth.
The latest data underscores a resilient services landscape despite headwinds. New orders grew at their slowest pace in 13 months amid intensifying competition, yet overall demand remained buoyant. Companies reported gains from heightened customer inquiries and aggressive marketing, though some noted challenges from market saturation.
HSBC India’s Chief Economist Pranjul Bhandari highlighted the survey’s positive takeaways. ‘February’s PMI reading of 58.1, largely unchanged from January’s 58.5, confirms another month of strong expansion in services,’ she stated. International sales saw notable improvement, prompting firms to ramp up hiring to meet operational demands.
The composite PMI, blending manufacturing and services data, surged to 58.9 – the fastest growth in three months, propelled by manufacturing strength. Finance and insurance led services sub-sectors with the sharpest rises in output and orders, though at a moderated pace compared to prior periods. Real estate and business services lagged behind.
Looking ahead, growth outlooks remain stable, buoyed by domestic and export demand. This performance reinforces India’s position as a bright spot in global economic recovery, with services playing a pivotal role in sustaining high GDP trajectory.