India’s Services Growth Eases in October but Remains Robust
India’s services sector expansion slowed in October, though it continued to show strong performance overall. The HSBC India Services PMI, compiled by S&P Global, slipped to 58.9 from 60.9 in September — the weakest pace since May — as competitive pressures and heavy rainfall in some regions tempered growth. However, the index stayed well above the 50-mark indicating expansion and remained higher than its long-run average of 54.3.
Despite the moderation, international demand for Indian services continued to improve, with another rise recorded in external sales. While the pace of global demand growth was the slowest since March, survey respondents noted that GST relief helped ease cost pressures. Input costs and output charges rose at their slowest in over a year, enabling firms to support new business, meet deadlines, and boost hiring.
The broader economic picture also showed momentum cooling slightly. The HSBC India Composite PMI Output Index — combining manufacturing and services data — declined from 61 in September to 60.4 in October, marking the softest increase since May. Still, companies remain optimistic about business activity in the coming year, supported by resilient demand and ongoing recruiting efforts.
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