In October, India’s services sector kept expanding strongly, according to the latest Purchasing Managers’ Index (PMI) released on Thursday. The HSBC India Services PMI climbed to 58.9, well above the break‑even line of 50 and the long‑term average of 54.3.
The data shows that demand stayed buoyant and tax relief from the Goods and Services Tax (GST) helped keep costs in check. While competition and heavy rains slowed growth a bit, businesses remain optimistic about the next 12 months. Chief India Economist at HSBC, Pranjul Bhandari, noted that input costs rose at the slowest pace in 14 months, giving firms some relief.
New business orders also grew, although the increase was the smallest in five months. Still, companies highlighted strong demand, better marketing and rising international sales as key positives. They expect the trend to continue, with advertising, more client inquiries and competitive pricing fueling further growth.
Separate data on manufacturing shows a similar upbeat picture. The HSBC India Manufacturing PMI rose to 59.2 in October from 57.7 in September. The jump came from a quicker rise in new orders and factory output, driven by strong domestic demand, the latest GST reforms (often called GST 2.0), productivity gains and higher technology investment.
Overall, India’s services and manufacturing sectors remain robust, keeping the economy on a solid growth path amid ongoing tax reforms and supportive demand.
Source: ianslive
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