India’s services sector witness softer growth in February

India’s services sector growth eased in February, as new orders rose at the slowest pace since January 2025. According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index slowed down to 58.1 in February from 58.5 in January. However, the HSBC India Composite PMI Output Index -- which measures both manufacturing and services -- surged to 58.9 in February as against 58.4 in January.

The report said that one area of outperformance was exports, as services firms reported gains from many parts of the world, including Canada, Germany, mainland China, Singapore, the UAE, the UK and the US.

On average, international sales expanded at the fastest pace since last August. Service providers were confident in their ability to secure new orders and thereby lift business activity over the course of the coming 12 months.

On the price front, there was the sharpest increase in operating expenses among Indian services firms in two-and-a-half years, with the rate of inflation edging above its historical average.

Similarly, prices charged for the provision of services were raised to the greatest extent in six months. Besides, Indian services companies indicated mild pressure on their operating capacities, as evidenced by a second successive monthly increase in outstanding business volumes. The rate of accumulation was marginal and similar to January.

India’s industrial output growth eased to 4.8% year-on-year in January, down from 7.8% in December, as manufacturing and electricity output expanded at a moderate rate, government data showed on Monday.