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India’s services sector growth strengthened in the month of September, as a positive demand environment boosted intakes of new business and output volumes. As per the survey report, the seasonally adjusted S&P Global India Services PMI Business Activity Index rose at 61.0 in September from 60.1 in August. Further, the S&P Global India Composite PMI Output Index -- which measures both manufacturing and services -- surged to 61.0 in September as against 60.9 in August.

The latest data showed a substantial increase in new business placed with Indian service providers, one that was the second-fastest since June 2010. Besides the rise in total sales, there was an upturn in demand from abroad, particularly from clients based in Asia, Europe and North America. The overall rate of growth was marked and one of the quickest seen in the series history (since September 2014), despite slowing to a three-month low.

On the price front, input cost inflation retreated substantially in September. The rate of increase was equal to its long-run average and one of the weakest since late-2010. Some firms opted to pass on to their clients additional cost increases by raising selling prices. Meanwhile, confidence in the outlook improved, with survey members forecasting healthy market dynamics and buoyant demand for the year ahead. The level of positive sentiment was at its highest for over nine years.