India’s services sector saw strong growth in February, driven by rising demand and a surge in new business orders. Both domestic and international demand picked up, leading to higher output and more hiring across companies.
Businesses Get More Orders, Including from Abroad
Service providers reported a sharp increase in new orders, with international clients from Africa, Asia, Europe, and America contributing to the growth. In fact, foreign sales grew at the fastest pace in six months, showing strong global interest in Indian services.
PMI Data Shows Strong Recovery
The HSBC India Services PMI jumped to 59.0 in February, up from 56.5 in January, showing faster expansion. The broader HSBC India Composite Output Index, which includes both services and manufacturing, also rose from 57.7 to 58.8, indicating strong economic momentum.
Companies Hiring More Workers
With demand increasing, businesses expanded their workforce, hiring at one of the fastest rates recorded since December 2005. Companies recruited both full-time and part-time employees to manage growing workloads.
Costs Still a Challenge, But Inflation Eases
Even though inflation dropped to a four-month low, businesses continued to struggle with higher costs. Salaries, overtime, and raw materials like food and packaging became more expensive. However, companies kept their selling prices steady compared to January.
The Road Ahead
With rising demand, growing international orders, and increased hiring, India’s services sector looks strong. While businesses face cost pressures, their focus on expansion and recruitment signals confidence in continued growth.
