India Services PMI Drops to 57.7 in September 2026
By ThePip Desk
India’s services growth eased as the HSBC India Services PMI dropped to 57.7 in September 2026, alongside a slowdown in retail demat account additions.
India economic indicators experienced a cooling phase in September 2026, marked by a moderation in the services sector and a deceleration in retail investor participation.
Key Metrics
- HSBC India Services PMI dropped to 57.7 from 60.9 in August.
- New demat account additions fell to 2.89 million during the month.
The HSBC India Services Purchasing Managers’ Index indicated a moderation in growth for the services sector, dropping from the previous month’s reading of 60.9. Despite this decline, the index stays well above the 50-point threshold separating expansion from contraction.
Sector Performance
- New business inflows and overall demand remained strong despite the slower pace.
- Companies faced ongoing inflationary pressures with rising input costs impacting operational expenses.
- Firms continued hiring personnel to keep pace with ongoing demand and order books.
Concurrently, retail investor participation cooled off during the month as the broader market faced a significant sell-off. New demat account additions in India dropped to 2.89 million in September 2026 as market volatility impacted overall sentiment.