New Delhi, May 6 (IANS) India’s services sector continued to grow in April, with the Services Purchasing Managers’ Index (PMI) rising slightly to 58.7 from 58.5 in March, an HSBC report said on Tuesday.
A PMI reading above 50 indicates expansion, while anything below signals contraction.
The increase points to steady improvement in the services sector, supported by a sharp rise in new business orders, according to HSBC India Composite PMI Output Index.
Many companies reported strong market demand and successful marketing strategies, while others said they were able to handle more work due to better efficiency.
The finance and insurance sector led the growth, showing the highest gains in both output and new orders.
Export demand also picked up significantly. After a temporary slowdown in March, new export orders rose at their fastest pace since July 2024, driven by increased interest from markets in Asia, Europe, West Asia, and the United States.
This contributed to improved margins for service providers, as easing cost pressures allowed companies to raise prices at a quicker pace.
Pranjul Bhandari, chief India economist at HSBC, said services activity picked up pace in April, thanks to rising new export orders and improved pricing power.
However, while businesses remained hopeful about future growth, their overall confidence dipped slightly.
The broader economic picture also looked positive. India’s Composite PMI — which combines services and manufacturing data — rose to 59.7 in April from 59.5 in March, marking the sharpest rate of growth since August 2024.
This suggests that private sector activity, driven by both strong services and manufacturing performance, expanded at the fastest pace in nine months, the report said.
Manufacturing also showed improvement, with the HSBC India Manufacturing PMI inching up to 58.2 from 58.1 in March, hitting a 10-month high.
This follows a 14-month low in February. The rebound in April was fuelled by higher production, more hiring, and increased purchasing of inputs.
Meanwhile, India’s Index of Industrial Production (IIP) showed modest recovery in March, rising to 3 per cent after hitting a six-month low of 2.72 per cent in February.
–IANS
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