20.02.202605:09:38UTC+00India Services Growth Slightly Cools

The HSBC India Services PMI eased slightly to 58.4 in February 2026 from 58.5 in January, indicating a marginally slower yet still robust expansion in services activity, according to preliminary estimates. Overall business activity softened only modestly, while services firms saw a marked acceleration in new export orders, with international sales growing at their fastest pace since August 2025. In contrast, domestic demand weakened, reflecting, in part, increased competitive pressures and more cost-effective service offerings available elsewhere.

Stronger export growth and rising backlogs encouraged firms to step up hiring, resulting in employment expanding at a modest but quicker pace. On the cost side, input prices rose at the fastest rate in two and a half years. In turn, firms responded by raising their selling prices more sharply. Looking ahead, business sentiment strengthened, with companies reporting their highest level of optimism in a year, underpinned by expectations of benefits from investment and marketing initiatives, despite ongoing elevated cost pressures.