India’s services sector regained momentum in January, with activity expanding at the fastest pace in two months, according to the latest HSBC India Services Purchasing Managers’ Index (PMI) compiled by S&P Global. The seasonally adjusted index rose to 58.5 in January from 58.0 in December, signaling sustained growth in the dominant services segment of the economy.

Key Highlights

• India’s services activity accelerated in January, supported by stronger demand, higher output, and improved business confidence.
• PMI data showed expansion in new orders and hiring, indicating resilience across India’s dominant services-driven economy.

The uptick in the PMI reflects stronger demand conditions, as firms reported quicker expansions in new business intake and output across the services landscape. The improvement in activity also translated into increased hiring, with service providers welcoming fresh staff as business confidence climbed.

Also Read: India Services PMI Slows to 58 in December: HSBC Survey

Economists attributed the acceleration to both buoyant domestic demand and solid international orders, including contributions from markets in South and Southeast Asia. Firms remained optimistic about the outlook, supported by efficiency gains, effective marketing efforts, and broader investments in technology.

In PMI terms, readings above the neutral 50 level indicate expansion, and the January figure marks a meaningful rebound following a recent slowdown. The survey also pointed to ongoing moderate increases in input costs and service charges, reflecting underlying pressures in key sectors.

The composite PMI, which combines services and manufacturing activity, also strengthened in January, suggesting broader economic resilience at the start of 2026.