New Delhi, April 6: India’s service sector experienced an uptick in activities during March, bolstered by international orders. While domestic new business growth showed signs of slowing, there was a notable increase in business confidence, according to a report released on Monday.
The HSBC India Services PMI report, compiled by S&P Global, indicated that India’s Services PMI stood at 57.5 in March, surpassing the long-term average of 54.4.
The report highlighted that companies recorded the fastest job growth since mid-2025 and presented the strongest outlook for production in nearly 12 years.
According to the report, “Panelists noted that the increase in new business bolstered growth, but production was constrained due to demand impacts from the Middle East conflict, market conditions, and tourism.”
Indeed, while there was an increase in hiring for new work, the pace slowed to the lowest since January 2025 at the end of the last financial quarter.
Among the four major sectors of the service economy, three experienced sluggish sales growth, including finance and insurance, real estate and business services, and transportation, information, and communication.
The report stated, “In March, the growth rate of production in India’s service economy was the slowest in the past 14 months, reflecting a downturn in the growth of new business orders, although it was nearly at record levels for international orders.”
Meanwhile, due to the most significant rise in input costs since June 2022, selling price inflation reached its highest level in seven months.
According to the report, the slowdown in the growth of total new orders coincided with a surge in production cost inflation. In March, the prices charged for the provision of Indian services saw the highest increase in seven months, exceeding the long-term series average.
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My name is Narendra Jijhontiya. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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