India Services Growth Hits 14-Month Low as Inflation Bites

India’s services sector experienced a deceleration in growth during March, with the Purchasing Managers' Index (PMI) falling to 57.5. This figure represents the lowest reading for the sector in 14 months. Despite the overall slowdown, the industry continues to reflect underlying momentum, characterized by robust employment generation across the country. However, the report highlights that service providers are currently contending with persistent inflationary pressures. The rise in input costs remains a significant headwind for businesses as they navigate the current economic environment. While the PMI remains in expansionary territory—as any figure above 50.0 indicates growth—the dip to 57.5 underscores a cooling trend compared to the more aggressive expansion observed in previous months.