The HSBC India Services PMI was revised up to 57.5 in March 2026 from a preliminary estimate of 57.2, slightly above market expectations of 57.4. The reading points to a slower yet still solid expansion in the services sector. It also represents the weakest pace of growth since January 2025 and comes in below February’s 58.1, though demand remained resilient, supported in particular by new export orders, which grew at their fastest rate since mid‑2024.
While gains in new business continued to underpin overall activity, output was tempered by the impact of the Middle East conflict on demand and tourism. Employment rose, with job creation accelerating to its strongest pace since mid‑2025.
On the price front, input cost inflation quickened to near its highest level in almost four years, reflecting increased prices for chicken, cooking oil, eggs, electricity, fish, fruit, fuel, labor, meat, and vegetables. In turn, output price inflation climbed to a seven‑month high. Business sentiment also improved, supported by ongoing employment gains.
