Activity in India’s services sector has rebounded from lowest in nearly a year due to new business even as job creation remained stagnant.
HSBC’s India Services Purchasing Managers’ Index, which is compiled by S&P Global, rose to 58.5 in January 2026 from 58.0 in December 2025. That marks the 24th consecutive month of expansion — the longest streak since the survey began in 2005. A reading above 50 indicates expansion, and contraction below.
“Robust output growth was driven by a steady influx of new orders, including increased international demand from South and Southeast Asia,” HSBC’s Chief India Economist Pranjul Bhandari said.
India Services PMI — Key Factors for Growth
The pickup in services activity in the world’s populous country was driven by new business, which expanded at its fastest pace since November. A stronger online presence and aggressive marketing helped boost sales. A surge in new export business—a three-month high due to increased demand from Indonesia, Qatar, Sri Lanka and Vietnam—also supported the services sector.
But while demand rose, hiring to cater to the demand was subdued. The pace of job creation hovered just above the 50 mark, signalling stagnation in the labour market. At the same time, higher inputs costs weighed, prompting service providers to pass on part of the increase to customers.
The HSBC India Composite PMI, which combines services and manufacturing, rose to 58.4 in January from 57.8 in December.