India’s services sector witnessed slower expansion in the month of March 2026, rising at the softest pace in 14 months.  According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index slowed down to 57.5 in March from 58.1 in February. The HSBC India Composite PMI Output Index -- which measures both manufacturing and services -- also eased to 57.0 in March as against 58.9 in February.

The report further said that intakes of new work rose at the slowest pace since January 2025 at the end of the last fiscal quarter. Softer increases in sales were noted in three of the four broad areas of the service economy, namely Finance & Insurance, Real Estate & Business Services and Transport, Information & Communication. Overall growth in foreign sales neared a series peak. 

On the inflation front, input prices increased at the fastest pace in close to four years, while services firms transferred part of their additional cost burdens to clients, but they continued to absorb some of it. Out of the four broad areas of the service economy monitored by the survey, the quickest increases in input costs and output charges were seen in Consumer Services and Finance & Insurance respectively.

There was a third consecutive monthly increase in employment. Moreover, the pace of job creation was solid and the strongest since mid-2025. Besides, firms were at their most upbeat towards the outlook for output in close to 12 years, on hopes of an improvement in demand and market conditions. Advertising and better customer relations were also expected to bear fruit.