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India’s services sector growth eased in the month of March however remained in growth territory (above 50.0) for the twentieth successive month, amid favourable demand conditions and new business gains. As per the survey report, the seasonally adjusted S&P Global India Services PMI Business Activity Index fell to 57.8 in March from 59.4 in February. Further, the S&P Global India Composite PMI Output Index -- which measures both manufacturing and services -- also fell to 58.4 in March from 59.0 in February.

The survey report further noted that similar to output, new business inflows increased at a softer but still sharp rate in March. The rise in overall new business was supported by an increase in international sales. On the inflation front, there was a further increase in input prices at Indian services firms, amid higher food, fuel, transportation and wage costs. Backed by demand buoyancy, service providers shared part of their additional cost burdens with clients in March via an upward revision to selling prices.

Meanwhile, service providers were on average optimistic that output would expand in the year ahead. Demand strength and marketing efforts were the main reasons supporting business confidence. Nevertheless, the overall level of positive sentiment fell to an eight-month low as several firms foresee no change in activity from present levels.