India’s services sector activity remained steady in September, with the HSBC India Services Purchasing Managers’ Index (PMI) standing at 60.9, according to data released by S&P Global on Monday. 

Pranjul Bhandari, Chief India Economist at HSBC, said business activity in the services sector remained strong even though it was slightly lower than the recent high seen in August.

“Most trackers moderated, but nothing in the survey suggested there is a big loss in growth momentum in services,” she said.

“Instead, the Future Activity Index rose to its highest level since March, indicating strengthening optimism among services companies about business prospects,” she added.

The PMI reading signalled continued stability in India’s services economy, supported by firm demand, new business activity, and a positive outlook among companies.

The sector has remained one of the key contributors to India’s overall economic performance this year.

Meanwhile, India’s manufacturing sector also maintained its growth momentum in September, though at a slower pace.

The HSBC India Manufacturing PMI stood at 57.7, down from 59.3 in August, marking the weakest improvement in sector health since May.

However, the figure remains well above the neutral 50 level, which separates expansion from contraction.

The September report highlighted that manufacturing output continued to grow on the back of steady demand, though firms reported a mild slowdown in new orders and purchasing activity.

Employment levels and input inventories remained stable, reflecting confidence in the business outlook for the coming months.

In August, India’s manufacturing PMI had climbed to 59.3, driven by strong domestic demand and robust production.

According to S&P Global, that was the fastest improvement in operating conditions in over 17 years, with much of the momentum coming from advertising success and demand buoyancy across intermediate and capital goods categories.

Analysts believe that while both manufacturing and services sectors moderated slightly in September, the overall growth momentum in India’s economy remains firm, supported by steady domestic demand, policy stability, and improving business confidence.