India’s service activity declines to 26-month low of 56.5 in January

Services activity dips to a 26 month low in January

Service activity in the country had a poorer showing at the start of the year, with the index declining to a 26-month low of 56.5 compared with 59.3 in the previous month, according to results of a private sector survey released on February 5.

December marks the first time in four months that the HSBC India Services Business Activity Index slipped below the 58 mark.

The service sector performance is in contrast with manufacturing sector, which recorded a 6-month high of 57.7 compared with 56.4 in the previous month.

There was better performance on the consumption front as well in January. Gross GST collections rose to a nine-month high of Rs 1.92 lakh crore in January, registering the first double-digit growth in six months.

In the Budget for the financial year 2025-26, presented on February 1, the government has tried to give growth a push with the rationalisation of income-tax rates.