India’s services PMI rose to 55.2 in September from 54.1 in August, marking a three-month high as domestic demand and new orders strengthened.
New Delhi: India’s services sector regained momentum in September, with business activity expanding at its fastest pace in three months as stronger domestic demand and a rise in new orders supported growth.
The seasonally adjusted HSBC India Services PMI Business Activity Index climbed to 55.2 in September, up from 54.1 in August. The reading marked the strongest expansion in services activity since June, according to the survey released on Tuesday.
New business also recorded its fastest growth in three months, with companies reporting stronger demand across a range of segments, including digital solutions, food services, insurance, loans, software, transportation, tours and travel.
The finance and insurance sectors, along with consumer services, reported some of the strongest increases in activity and sales during the month.
HSBC India Chief India Economist Pranjul Bhandari said the survey pointed to continued improvement in the services sector, supported by strengthening domestic demand. Export business also remained on a growth path, although the pace of expansion moderated.
International demand for Indian services improved during September, with companies reporting increased business from Germany, the UAE, the UK and the US. However, growth in new export orders slowed to a moderate pace.
Improving order books and projects in the pipeline encouraged services companies to add to their workforce. Employment increased during September, although the pace of job creation was slower than in August.
A key positive for businesses was the moderation in input costs. Inflation in input prices fell to its lowest level since November 2025, reducing pressure on service providers to raise their charges.
Selling price inflation also eased to its lowest level since June and remained moderate, suggesting that businesses faced less pressure to pass higher costs on to customers.
Business confidence among services companies improved to a three-month high, with firms pointing to resilient demand and an increase in customer enquiries.
Despite the September improvement, average services activity during the July-September quarter remained weaker than in the previous quarter. It was the weakest quarterly performance since the three months ended March 2022.
Meanwhile, the HSBC India Composite PMI Output Index, covering both manufacturing and services, rose to 55.9 in September from 54.3 in August. The increase indicated that overall private-sector output expanded at its fastest pace since June.
