India's Services Sector Growth Stays Strong, Defies Inflation

New Delhi: The growth in India’s dominant services sector remained strong in November despite the inflationary pressure for over a decade. Though the sector marginally dipped in November as new orders and output receded, the consistent demand led to a rise in business sentiment and record hiring, a private business survey showed on Wednesday.

As per the survey by seasonally adjusted HSBC India Services Business Activity, the India’s services Purchasing Managers’ Index or PMI was down marginally to 58.4 from 58.5 in October as sales increased at a softer pace. Last month, the country's services PMI recovered from its 10-month low. In the PMI parlance, a print above 50 means expansion, while a score below 50 denotes contraction.

Commenting on the survey, chief India economist at HSBC Pranjul Bhandari said that India posted a strong 58.4 services PMI in November 2024, down only a fraction from the prior month’s 58.5. “During November, services sector employment notably grew at the fastest pace ever recorded since this survey began in 2005,” Bhandari said.