India’s services powerhouse roared back in January as the HSBC PMI index reached 58.5, its loftiest point in two months and ahead of December’s 58.0. S&P Global’s comprehensive survey attributes this to brisker output and new order growth, cementing the sector’s expansionary streak.
Activity picked up pace with service providers more upbeat about prospects, resulting in net job creation. Growth persisted amid cost and price escalations, a testament to underlying demand robustness. Technology investments, marketing successes, and new business—especially from abroad—drove the surge.
While homegrown demand dominated new orders, international inflows accelerated sharply, sourcing from nations like Indonesia, Kenya, Malaysia, Oman, Qatar, Sri Lanka, Thailand, and Vietnam. The pace of expansion was the swiftest in three months, with business optimism at a quarterly zenith thanks to efficiency boosts and client wins.
HSBC economist Pranjul Bhandari remarked, ‘From 58.0 to 58.5, this reflects sustained services vigor, with South/Southeast Asian demand supercharging orders.’ Inflationary pressures are contained relative to history, and the composite PMI’s strength highlights dual-sector demand.
As India navigates global challenges, this data instills confidence in its services-led recovery. Expanded hiring and tech focus indicate proactive strategies for future gains, potentially lifting overall economic sentiment and investment flows in the coming quarters.