India’s services sector growth eases slightly in March

India's services sector activity slightly eased in March, with sales slowing amid softer demand and easing inflationary pressures.

India's services sector activity eased slightly in March, weighed down by a marginal slowdown in sales amid softer demand conditions and easing inflationary pressures, a monthly survey said on Friday (April 4, 2025).

The seasonally adjusted HSBC India Services PMI Business Activity Index fell from February's reading of 59.0 to 58.5 in March, but remained above its long-run average of 54.2.

In the Purchasing Managers' Index (PMI) parlance, a print above 50 means expansion, while a score below 50 denotes contraction.

"India recorded a 58.5 services PMI in March 2025, softening slightly from the month prior. Domestic and international demand remained fairly buoyant, despite being sequentially a tick lower than the month before," Pranjul Bhandari, Chief India Economist at HSBC, said.

According to survey participants, output was supported by buoyant underlying demand and ongoing increases in new business. However, sales rose at a softer pace than in February, they added.

The slowdown in the growth of total new business reflected a weaker increase in international sales. New orders from abroad rose at the softest pace in 15 months.

On the price front, output charge inflation slowed to a three-and-a-half-year low in March. Only 1 per cent of survey participants reported higher average fees than in February, with the remaining companies signalling no change.