India Services PMI: February 2026 Data Shows Sustained Expansion
India’s services sector maintained robust momentum in February 2026, with the Services PMI rising to 58.9 from January’s 58.4. The index has now stayed above the 50 mark for ten straight months, underscoring persistent growth in the sector. Released on March 4, 2026, the latest data reflects ongoing resilience amid shifting global conditions.[1]
Table of Contents
Big-Picture Snapshot
Drivers this month
- New business inflows +0.3pp
- Employment growth +0.1pp
- Input cost pressures -0.05pp
Policy pulse
The February Services PMI reading of 58.9 stands well above the 50.0 expansion threshold. The Reserve Bank of India does not set a formal PMI target, but sustained prints above 55 are typically viewed as a sign of strong sectoral momentum.
Market lens
Equity markets showed little immediate reaction to the release, as the figure was broadly in line with consensus and recent trends. The INR remained stable against major currencies, reflecting investor confidence in the sector’s resilience.
Foundational Indicators
Drivers this month
- Business expectations +0.2pp
- Export orders +0.1pp
- Backlogs of work -0.04pp
Policy pulse
February’s 58.9 reading compares to 58.4 in January and 59.3 in mid-February. The 12-month average stands at 59.2, with the index peaking at 61 in October 2025. The RBI continues to monitor sectoral data for inflationary signals but has not adjusted policy in response to recent PMI prints.
Market lens
Bond yields held steady after the release, as the data confirmed ongoing expansion without signaling overheating. Investors remain focused on core inflation and employment trends for further cues.
Chart Dynamics
Forward Outlook
Drivers this month
- Pipeline of new projects +0.2pp
- Input price moderation +0.1pp
- Client confidence +0.08pp
Policy pulse
The Services PMI remains comfortably above the 50 mark, signaling ongoing expansion. The RBI’s stance remains data-dependent, with no immediate policy shifts tied to the latest PMI figures.
Market lens
Derivatives markets priced in little change after the release, reflecting the absence of surprises. Market participants are watching for signs of sustained demand and cost pressures in the coming months.
Bullish scenario (25–35%): PMI climbs above 60, driven by strong domestic demand and easing global conditions. Base case (50–60%): Index remains in the 58–60 range, reflecting steady growth. Bearish scenario (10–20%): PMI dips below 57 due to external shocks or domestic policy tightening.
Data sourced from Sigmanomics and official PMI releases. The index is compiled from monthly surveys of purchasing managers, weighted by sectoral output.[1]
Closing Thoughts
Drivers this month
- Service sector resilience +0.15pp
- Stable employment +0.09pp
- Cost containment -0.03pp
Policy pulse
With the Services PMI holding above 58 for three consecutive months, policymakers are likely to view the sector as a pillar of economic stability. No immediate policy response is anticipated based on current data.
Market lens
Investor sentiment remains constructive, with the services sector continuing to underpin broader economic growth. The outlook hinges on sustained demand and prudent cost management.
Key Markets Reacting to Services PMI
India’s Services PMI data can influence a range of asset classes, from equities and currencies to global tech and commodity-linked stocks. Below are select symbols from verified Sigmanomics listings, each with a concise note on their typical correlation or sensitivity to India’s services sector momentum.
- AAPL – Apple’s supply chain exposure to India means strong services growth can support local demand and operational expansion.
- EURUSD – Euro-dollar pairs often react to emerging market data, with robust Indian services activity sometimes supporting risk-on sentiment.
- BTCUSD – Bitcoin’s price can be sensitive to macroeconomic data from large emerging markets, including India’s services sector prints.
| Year | Services PMI | AAPL |
|---|---|---|
| 2020 | 41.2 | Underperformed |
| 2022 | 53.6 | Recovered |
| 2024 | 57.5 | Outperformed |
| 2026 | 58.9 | Stable |
Periods of rising Services PMI have coincided with stronger AAPL performance, especially during post-pandemic recoveries. The relationship is not linear but shows positive correlation in expansion phases.
FAQ: India Services PMI: February 2026 Data Shows Sustained Expansion
- What is the latest India Services PMI reading?
- The February 2026 Services PMI for India is 58.9, indicating continued expansion in the sector.
- How does this month’s Services PMI compare to recent months?
- February’s 58.9 is up from January’s 58.4 and close to the 12-month average of 59.2, showing steady growth.
- Why is the Services PMI important for India’s economy?
- The Services PMI is a key indicator of sectoral health, influencing market sentiment and policy considerations.
India’s services sector continues to demonstrate resilience, with the February PMI confirming ongoing expansion and market stability.
Updated 3/4/26
This has been drafted with AI assistance and then thoroughly reviewed, refined, and approved by our human editorial team to ensure accuracy, and originality.
- Sigmanomics database, official Services PMI releases, March 2026.
February’s Services PMI came in at 58.9, up from January’s 58.4 and just below the 12-month average of 59.2. The index has remained above 58 since December 2025, with only a brief dip to 57.8 in January. Over the last six months, the PMI has ranged from a high of 61 in October 2025 to a low of 57.8 in January 2026.
Compared to November 2025’s 60.4 and December’s 59.7, the current reading signals a modest rebound. The trend underscores the sector’s resilience despite global headwinds and fluctuating demand.