India’s services growth eases in September but holds strong, shows PMI data

India’s services sector activity eased in September, with the HSBC India Services Purchasing Managers’ Index (PMI) falling to 60.9 from a 15-year high of 62.9 clocked in August, data released on October 6 showed.

Despite the fall, September marked the fourth consecutive month the index holding above the 60-mark - indicating robust business expansion and resilient demand conditions.

The moderation in services activity was less pronounced than what was seen in the manufacturing space, where the PMI slipped to a four-month low of 57.7 from 59.3 in August. Economists said the sector continues to anchor India’s economic growth even as global trade headwinds weigh on manufacturing exports.

At the Kautilya Economic Conclave (October 3–5), several international experts noted that services - particularly IT, financial, and digital segments - will play a decisive role in helping India realise its vision of becoming a developed economy by 2047.

Last week, the RBI had raised India's growth forecast for FY26 to 6.8 percent from 6.5 percent projected earlier, as it noted that second quarter is likely to see another 7 percent forecast in Q2FY26. The Indian economy surprised with a 7.8 percent growth in the first quarter of this fiscal.