India’s services PMI in February eased slightly to 58.1 from 58.5 in January, with growth in new orders hitting a 13-month low since January 2025 even though exports rose.
The month still showed broad stability despite the softer expansion in business activity, according to the HSBC India Services PMI survey.
Finance and insurance remained the strongest-performing segment in February, registering the fastest growth in both output and new orders whereas real estate and business services lagged behind on both fronts.
Pranjul Bhandari, Chief India Economist at HSBC, said the “largely unchanged growth from the previous month signals another month of robust expansion.
International demand strengthened notably, while firms stepped up hiring compared to January, reflecting confidence in sustained growth.
Output across India’s services economy strong towards the end of the fiscal year, supported by efficiency gains, resilient demand, rising sales and an increase in technology-driven projects.
Business sentiment surged to its highest level in a year, even as companies reported faster increases in input costs and output prices.
The headline Services PMI, reflecting month-on-month activity, remained well above the 50-mark that indicates expansion, while a print below that threshold signals contraction.
Exports emerged as a key area of strength, with firms reporting higher international sales from markets including Canada, Germany, mainland China, Singapore, the UAE, the UK and the US. Overall, overseas demand grew at the quickest pace since last August.
“Input and output price inflation accelerated, with firms passing higher expenses — particularly for food and labour — on to customers, yet business confidence climbed to its highest level in a year as companies looked to broaden their market presence,” Bhandari said.
