India services growth rises in September, PMI touches 55.2

India’s services sector gained momentum in September, expanding at its fastest pace in three months as stronger domestic demand and a sharp rise in new orders lifted business activity, according to the HSBC India Services PMI released on Tuesday.The seasonally adjusted HSBC India Services PMI Business Activity Index rose to 55.2 in September from 54.1 in August, marking the strongest expansion since June.
New business also grew at its fastest pace in three months, with firms reporting stronger demand for digital solutions, food, insurance, loans, software, transportation, tours and travel. Finance and insurance, along with consumer services, recorded the strongest gains in activity and sales.HSBC India Chief India Economist Pranjul Bhandari said the services sector continued to improve, supported by strengthening domestic demand. Export business also expanded, although growth moderated.Input-cost pressures eased during the month, with inflation in input prices falling to its lowest level since November 2025. Selling price inflation also moderated, reaching its lowest level since June.
Improving order books and projects in the pipeline supported further hiring, although the pace of job creation slowed from August.International demand for Indian services improved, particularly from Germany, the UAE, the UK and the US. However, growth in new export business remained moderate.
Business confidence among services firms rose to a three-month high, supported by resilient demand and rising customer enquiries.Despite the September improvement, average services activity during the July-September quarter remained below the previous quarter, making it the weakest quarterly performance since the three months to March 2022.
Meanwhile, the HSBC India Composite PMI Output Index, covering both manufacturing and services, climbed to 55.9 in September from 54.3 in August, signalling the fastest expansion in private-sector output since June.

(Business Correspondent)