India’s services PMI in October eased to 58.9 in October from 60.9 in September.
The international demand for Indian services improved further, as signalled by another increase in external sales.
| Photo Credit:
REUTERS
Growth of India’s services sector slowed in October, while remaining strong overall, supported by resilient demand and Goods and Services (GST) Tax relief. According to data released by S&P Global, the HSBC India Services Purchasing Managers’ Index (PMI) fell to 58.9 in October from 60.9 in September, indicating the slowest pace of expansion since May, as competitive cost pressures and heavy rains in parts of the country led to a lower increase in output.
Notwithstanding the moderation, the reading remained well above the neutral 50 threshold that separates expansion from contraction. The October Services PMI index was comfortably above both the neutral mark of 50 and its long-run average of 54.3.
“India’s services PMI softened to 58.9 in October, which represented the slowest pace of expansion since May. Competitive pressures and heavy rains were cited as contributors to the sequential slowdown,” said Pranjul Bhandari, Chief India Economist at HSBC.
While factors like demand buoyancy and GST relief reportedly led to an improvement in operating conditions, competition and heavy rains constrained growth, as per the HSBC India Services PMI, compiled by S&P Global on the basis of responses to questionnaires sent to a panel of around 400 service sector companies.
International demand
The international demand for Indian services improved further, as signalled by another increase in external sales. The rate of expansion was solid, though the weakest since March, as per the survey.
Meanwhile, monitored firms suggested that the GST reform curbed price pressures. Input costs and output charges rose at the slowest rates in 14 and seven months, respectively.
Companies are confident of a rise in business activity over the next 12 months.
Amid reports of efforts to support rising new-business intake, meet delivery deadlines, and maintain reliable services, companies recruited additional staff in October.
Meanwhile, the combined output of India’s manufacturing and service sectors continued to expand sharply in October, but growth lost momentum. Falling from 61 in September to 60.4, the HSBC India Composite PMI Output Index indicated the softest increase since May.
“India’s composite PMI fell on a sequential basis from 61 in September to 60.4 last month, largely due to the slowdown in the services sector,” Bhandari said.
Composite PMI indices are weighted averages of comparable manufacturing and services PMI indices. Weights reflect the relative size of the manufacturing and service sectors according to official GDP data.
Published on November 6, 2025
