India's Services Sector Sees Renewed Momentum in April

India's services sector regained pace in April, following a brief slowdown in March, as per the latest HSBC Services PMI data released by S&P Global. The seasonally adjusted HSBC India Services PMI Business Activity Index increased to 58.7 in April, a rise from 58.5 in March, indicating a significant and robust expansion in business activities. The latest figure surpasses the long-term average of 54.2, reflecting consistent growth.

S&P Global highlighted that after the March lull, the Indian services sector saw acceleration in growth in April, largely driven by faster new order inflows, leading to increased employment rates. The improvement is attributed to a surge in new business orders, one of the highest in eight months. Favorable market conditions and effective marketing strategies were credited by many firms for this uptick in demand.

International markets significantly contributed, with increased demand for Indian services from regions such as Asia, Europe, the Middle East, and the United States, marking a rapid rise in new export orders since July 2024. This growth prompted Indian service companies to intensify their hiring, marking the thirty-fifth consecutive month of job creation, with the hiring rate exceeding March's. Despite growing business volumes leading to capacity constraints, the renewed momentum underscores the sector's resilience amidst rising domestic and international demands.

(With inputs from agencies.)