After experiencing a slowdown in March, India’s services sector regained momentum in the month of April, driven by a quicker increase in new order inflows, which also underpinned a faster expansion in employment. According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index jumped to 58.7 in April from 58.5 in March. Further, the HSBC India Composite PMI Output Index -- which measures both manufacturing and services -- also surged to 59.7 in April as against 59.5 in March.
The report further noted that Indian companies continued to benefit from improved international demand for their services, with Asia, Europe, the Middle East and the US particularly cited as sources of strength. Overall, new export orders expanded at the fastest pace since July 2024. Indian services companies increased their workforce numbers for the thirty-fifth consecutive month in April. Moreover, the pace of job creation was marked and quicker than in March.
On the inflation front, input prices rose moderately and at the slowest pace for six months at the start of the 2025/26 fiscal year. Indian services firms increased their average selling prices during April, as they sought to transfer higher cost burdens to clients. The rate of charge inflation was solid, faster than in March and above its long-run average. Cost pressures were highest among Consumer Services companies, despite a slowdown since March, but it was in the Finance & Insurance segment that the fastest rate of charge inflation was registered.
