The HSBC India Services PMI fell to 57.2 in March 2026 from 58.1 in February, signaling a slower yet still solid expansion in the services sector.

The latest reading marked the weakest growth since January 2025, weighed by softer domestic demand despite resilient external conditions.

New business growth eased to a three-year low, though export orders hit a series high, supported by broad-based international demand.

However, geopolitical tensions in the Middle East, market volatility, and inflationary pressures, weighed on activity and disrupted segments such as international travel.

On prices, input costs rose at the fastest pace in nearly four years, with firms passing on only part of the increase.

Despite softer demand, hiring continued to expand, with employment rising at the fastest rate since August 2025.

Looking ahead, sentiment remained positive, underpinned by expectations of improved efficiency, stronger marketing efforts, and new client gains, even as cost pressures persist.

Source: Trading Economics