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India’s Services PMI Slips to 57.5 as War-Driven Costs Bite

Rising energy and shipping costs tied to the Middle East conflict are stoking inflation pressure.

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Overview

  • India’s HSBC Services PMI fell to 57.5 in March after Monday’s survey release, a 14‑month low though still above the 50 line that signals growth.
  • S&P Global said the Middle East war curbed domestic demand and tourism, which left new business growing at its slowest since January 2025.
  • Input costs rose at the fastest pace in about 45 months on higher fuel, transport and food prices, and firms could pass on only part of the hit to clients.
  • Foreign orders were a bright spot, with export demand reaching the second‑highest reading since the index began in 2014.
  • Slower services and weak factories pulled the Composite PMI down to 57.0, the softest in nearly three‑and‑a‑half years, a mix that keeps inflation and policy risks elevated.