India’s services sector growth slowed in September, with the HSBC India Services Purchasing Managers’ Index (PMI) declining to 60.9 from August’s 15-year high of 62.9, as per data released on October 6. Despite the dip, the index remained above the 60-mark for the fourth straight month, indicating strong business expansion and steady demand. The slowdown in services was milder compared to the manufacturing sector, where PMI dropped to 57.7 in September from 59.3 in August — a four-month low. Economists highlighted that the services sector continues to be a key driver of India’s economic momentum, even as manufacturing exports are affected by global trade challenges. At the Kautilya Economic Conclave (October 3–5), global experts emphasized the importance of IT, financial, and digital services in helping India achieve its goal of becoming a developed nation by 2047. Recently, the RBI raised its FY26 growth forecast to 6.8% from 6.5%, after the economy posted 7.8% growth in Q1 and is expected to grow 7% in Q2.
India’s services growth eases in September but holds strong
