India’s Services Sector Regains Momentum in April
6 May 2025 5:00 PM IST6 May 2025 5:00 PM IST
Alongside this positive trend, the capacity pressures continued to build, with unfinished work rising solidly
India’s Services Sector Regains Momentum in April. (Representational Image)
New Delhi: After a slowdown in the month of March, India’s services sector regained momentum in April, mainly due to stronger growth in new businesses and output. Alongside this positive trend, the capacity pressures continued to build, with unfinished work rising solidly. Besides, the increase in new orders also underpinned a faster expansion in employment, a private survey showed on Tuesday.
As per the survey, the seasonally adjusted HSBC India Services PMI rose to 58.7 in April from 58.5 in March, staying well above the 50-mark print that signals expansion, though it is still below February’s 59. "The index stood at 56.5 in January, 59.3 in December, 58.4 in November, 58.5 in October, and 57.7 in September," the survey said.
Commenting on the survey, Pranjul Bhandari, chief India economist at HSBC said that India 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," Bhandari said.
The survey further noted that on the pricing front, average charges increased at a quicker pace, despite cost pressures retreating to a six-month low. "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," Bhandari added.
The survey also pointed out that Indian companies continued to benefit from improved international demand for their services, with Asia, Europe, the Middle East and the US particularly cited as sources of strength. "Overall, new export orders expanded at the fastest
pace since July 2024. Indian services companies increased their workforce numbers for the thirty-fifth consecutive month in April. Moreover, the pace of job creation was marked and quicker than in March," it added
( Source : Deccan Chronicle )
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