India's Services PMI Remains Resilient at 58.1 in February
Synopsis
India's services sector shows strong growth in February, with a PMI of 58.1, despite a slowdown in new orders. This highlights the sector's resilience amid rising competition.
Key Takeaways
PMI at 58.1 indicates continued growth in services.
New orders growth has slowed to a 13-month low .
Finance and insurance sectors lead in performance.
Overall private sector activity is strong with Composite PMI at 58.9 .
Service providers are increasing hiring to meet demand.
New Delhi, March 4 (NationPress) The services sector in India demonstrated continued expansion at a robust rate in February, despite a deceleration in the growth of new orders due to intensifying competition. This is based on the most recent findings from the HSBC India Services PMI Business Activity Index.
The Services Purchasing Managers’ Index (PMI) was recorded at 58.1 for February, a slight decrease from January's 58.5.
A PMI reading exceeding 50 signifies growth, indicating that the sector remains firmly in the expansion zone as the current financial year approaches its conclusion.
The data revealed that growth in output across India's service economy remained generally stable. However, the increase in new orders fell to a 13-month low, even as businesses reported a significant rise in overall demand.
Some companies mentioned that increased client inquiries and enhanced marketing strategies contributed to sales growth, while others noted that the intensifying competition in the market hampered faster progress.
Pranjul Bhandari, Chief India Economist at HSBC, stated that the February PMI figure reflects another month of solid growth in the services sector.
She emphasized that while the increase in new orders has slowed due to escalating competition, international sales have seen a marked improvement. To meet operational demands, several service providers ramped up hiring during this period.
Bhandari remarked, "India’s services PMI reached 58.1 in February, showing minimal change from January’s 58.5, which indicates another month of significant growth in the sector."
The overall activity in the private sector also exhibited resilience. The Composite PMI, which aggregates data from manufacturing and services, increased to 58.9 in February.
This represents the fastest growth rate in three months, aided by a strong performance in the manufacturing sector.
Within the various segments of services, finance and insurance once again stood out as the top-performing sectors, achieving the highest growth rates in both output and new orders.
Nevertheless, even in this sector, the pace of growth has moderated compared to previous months. Conversely, the real estate and business services sectors lagged behind in terms of output and new order growth.
Point of View
It's evident that India's services sector continues to thrive, showcasing resilience amidst challenges. The latest PMI figures reflect a stable growth trajectory, which is vital for the economic landscape as we approach the financial year's end.
NationPress
10 May 2026
Frequently Asked Questions
What does a PMI reading above 50 indicate?
A PMI reading above 50 indicates expansion in the services sector.
How did the February PMI compare to January?
The February PMI was 58.1, slightly lower than January's 58.5.
Which sector performed best in February?
The finance and insurance sector was the best performer, showing the highest growth in output and new orders.
What factors contributed to the slowdown in new orders?
Growing competition in the market was a significant factor contributing to the slowdown in new orders.
What was the Composite PMI for February?
The Composite PMI, combining manufacturing and services data, rose to 58.9 in February.
