Our Bureau
New Delhi
With a considerable rise in export orders, India’s Purchasing Managers’ Index (PMI) for services rose to 58.7 in April, up from 58.5 in March, according to the latest HSBC Services PMI data released by S&P Global.
The India Composite Purchasing Managers’ Index (PMI) increased to 59.7, up from 59.5 in March. For the unversed, a PMI reading above 50 highlights sector expansion, while a reading below 50 indicates contraction, and 50 reflects no change.
The report said “After experiencing a slowdown in March, growth of business activity in the Indian service sector accelerated slightly in April. This regained momentum was largely driven by a quicker increase in new order inflows, which also underpinned a faster expansion in employment”.
The report noted that increase in demand was one of the best seen in the past eight months, attributed to a strong rise in new business orders. This was substantiated by favourable market conditions and effective marketing strategies executed by companies for the inflow of new work.
It also added that on the pricing front, average charges increased quickly, despite cost pressures retreating to a six-month low.
A major boost for the sector came through international demand for Indian services since July 2024. There was a surge in new export orders specifically from the regions of Asia, Europe, the Middle East, and the United States.
The increased flow of work in turn led the Indian services company to expand their workforce. It can be noted that April stood as the thirty-fifth consecutive month of job creation in the sector. The rate of hiring was also faster than that seen in March, showing companies’ confidence in sustained demand.
The sector also witnessed a downside of the increased business volumes with a solid rise in unfinished work.
While summing up the report, Pranjul Bhandari, chief India economist at HSBC, said, “India’s services activity rose at a faster pace than last month. New export orders gained momentum after taking a breather in March, accelerating at its fastest pace since July 2024. Margins improved as cost pressures eased, and prices charged rose at a faster pace. Though firms remained optimistic about future growth, their confidence waned slightly.”
