India's growing growth sector moderate in March | Mint

The growth of India’s service sector released in March, with a slight slowdown in operating activity and sales, while international orders saw their worst expansion within 15 months, according to a private survey released on Friday. The seasonally adapted HSBC India Services Purchasing Managers Index (PMI), compiled by S&P Global, dropped from 59 in February and 56.5 in January in March, while staying far above the 50 points threshold separating the extension of contraction. The index stood at 59.3 in December, 58.4 in November, 58.5 in October, and 57.7 in September. According to the survey, March has had the slowest increase in external orders since December 2023. Also read: Producing PMI backlashes-but four do not celebrate, but the cost of the cost has dropped to a five-month low, which fell off the rates of prices for the provision of the services, the prices added. stayed above his long -term average (54.2), ‘the survey added. According to Pranjul Bhandari, chief economist of the India India at HSBC, the services of India relieved to 58.5 in March 2025, slightly lower than the previous month, as domestic and international demand remained strong, although slightly softer consecutive. “India recorded a PMI of 58.5 services in March 2025, which softened slightly from the month before. Domestic and international demand remained quite alive, despite being a tick lower than the month before,” Bhandari said. Also read: The Indian economy is weakening in January, as sales of passenger vehicles, PMI momentum lose, coin detector “Meanwhile, job creation and load inflation, both cooled during March. The slowdown of growth in India’s service sector – a pillar of its economy – account of more than half of its gross domestic product (GDP). The Indian economy expanded 8.2% in 2023-24, with a growth of 7.8% in the January-March 2024 quarter and the Reserve Bank of India’s (RBI) projection for the financial year. However, Momentum delayed the following year. GDP growth decreased from 2024-25 to 6.7% in the first quarter, the slowest rate in five quarters, before slowing down to 5.4% in the second quarter-the slowest in almost two years-with a sluggish manufacturing, muted urban consumption and poor corporate earnings. The Economic Growth Engine of India had a revival in December (Q3FY25), which recovered from a low in the September Qwaral. Still, the 6.2% GDP growth reported was the slowest since Q4FY23, which hampered a quarter – the previous one (Q2), when it was 5.6% (revised estimate). India’s finance ministry recently said it expects the economy to grow by 6.5% in 2024-25, while the RBI grows 6.6%, aided by rural consumption, government investment and strong services. Manufacturing growth rises India’s manufacturing sector expanded in its fastest rate in March, powered by a strong demand and a sharp increase in production. The HSBC India manufacturing PMI, compiled by S&P Global, rose to 58.1 in March from 56.3 in February and 57.7 in January. The index was 56.4 in December and 56.5 in November. A reading above 50 indicates extension. Compound output index The HSBC India composite output index increased to a peak of 59.5 in March, from 58.8 in February, to indicate another month of growth above the trend. Also read: Stock analysis: India’s billionaire boom is not a sign of a hunky-dry economy “for both new business and production, the expansion rates were stronger in the manufacturing sector, where there was growth in growth. Despite seeing a slowdown, service providers still registered. “Operating confidence and job creation are nevertheless softened among goods and services businesses,” he added.