India's Services Growth Moderates in February Amid Rising Cost Pressures, PMI Shows

India's services sector growth moderated in February, with the HSBC India Services PMI slipping to 58.1 from January's 58.4, marking the slowest new business expansion since January 2025 amid rising competition. Operating costs increased sharply, driven by higher food, energy, and labor expenses, leading firms to raise output prices at the fastest pace in six months. Despite these pressures, employment grew for a second month and business confidence reached a one-year high, supported by strong international sales and marketing efforts. The overall composite PMI rose to 58.9, indicating robust private sector growth.