India's Services Sector Growth Slows Amid Global Challenges

The growth of India's services sector has decelerated to its slowest pace since November 2023, according to HSBC India's Services PMI. Despite the slowdown, the sector continues to show significant expansion rates, facing challenges like fiercer competition and moderated export order growth.

India's services sector has witnessed a slowdown in growth, with new business, international sales, and output increasing at their slowest rates since November 2023, as revealed by the HSBC India Services PMI report released on Friday.

The survey indicated a softer, but still robust, expansion in September with the headline figure falling from August's 60.9 to 57.7. The consistent value above the neutral mark of 50 underscores continued growth, although at a decelerated pace.

Challenges such as a tempered rise in new export orders and squeezed margins due to increased input costs were highlighted. Meanwhile, India's manufacturing sector has also experienced a similar slowdown, marking a broader trend across the economy.

(With inputs from agencies.)