India Services Growth Hits 14-Month Low on Cooling Demand

India’s services sector experienced a notable deceleration in March, with growth falling to its lowest level in 14 months. Data from the latest HSBC India Services Purchasing Managers' Index (PMI) highlights a cooling trend across the nation’s vital service economy.

The downturn in momentum is primarily attributed to a softer influx of new business orders compared to previous months. Alongside the cooling demand, service providers are grappling with persistent inflationary pressures. Rising operational expenses, specifically within the fuel, transport, and logistics sectors, have weighed heavily on the industry's performance. These input cost increases have created a challenging environment for service firms as they attempt to balance growth with maintaining margins amid a tightening economic landscape.