FX.co ★ India Services Growth Revised Slightly Lower

The HSBC India Services PMI was revised slightly lower to 58.1 in February 2026 from a flash estimate of 58.4. This was also down from January’s 58.5 and fell short of forecasts at 58.6, but still pointed to another month of strong expansion in the services sector.

New business inflows grew at a slower pace, with order growth easing to a 13‑month low amid rising competition. Even so, international sales increased at the fastest rate since last August, prompting firms to step up hiring. The pace of job creation exceeded its long‑term average.

Service providers experienced mild capacity pressures, evidenced by a second consecutive monthly rise in backlogs of work. At the same time, cost pressures strengthened: input price inflation accelerated to its highest level in two and a half years, driven by higher food prices and increased expenditure on energy, labour, and commodities. Output charges were also raised at a quicker pace, with output price inflation hitting a six‑month high.

Despite these cost headwinds, business sentiment improved, with confidence reaching its highest level in a year as companies looked to expand their footprint in both existing and new markets.