In a promising sign for India’s economy, the HSBC India Services Purchasing Managers’ Index (PMI) rose to 58.5 in January, the highest in two months and an improvement over December’s 58.0. S&P Global’s latest survey reveals a sector brimming with activity, propelled by accelerated new orders and output.
Service firms witnessed a notable rebound in growth, expressing heightened optimism that translated into net employment gains. They navigated rising input costs and output prices with agility, maintaining expansionary momentum. Key drivers included surging client demand, fresh business wins, and investments in cutting-edge technology.
New business, primarily from domestic sources but with strong international contributions, expanded at the quickest rate in three months. Clients from diverse regions like Indonesia, Kenya, Malaysia, and others in Southeast Asia and beyond fueled this global outreach. Business sentiment hit a three-month high, bolstered by operational efficiencies and successful marketing efforts.
Pranjul Bhandari, HSBC’s Chief India Economist, noted, ‘The jump to 58.5 from 58.0 indicates persistent strength, with new orders from South and Southeast Asia amplifying output growth.’ While price pressures persist, they remain subdued historically. The composite PMI’s robustness further affirms broad-based demand across India’s key sectors.
Looking ahead, this data suggests service providers are well-positioned for continued prosperity. Hiring initiatives and tech upgrades signal confidence in prolonged expansion, even as global headwinds test resilience. India’s services powerhouse continues to anchor economic stability and growth aspirations.