India Services PMI Slips Below Growth Threshold in December

India’s services sector showed signs of slowing momentum in December, as the Markit Services Purchasing Managers’ Index (PMI) slipped below the growth threshold, indicating subdued expansion. The latest data suggests that activity in key service segments such as hospitality, retail, transport, and business services softened toward the end of the year.

According to economists, the dip reflects weaker demand conditions, cautious consumer spending, and lingering global uncertainties that have affected new orders and business confidence. While some service providers reported stable operations, others pointed to rising input costs and slower client acquisition.

The PMI falling below the expansion mark is seen as a signal of moderation rather than contraction, with analysts noting that seasonal factors and year-end adjustments may have contributed to the slowdown. However, they also stress the need for close monitoring in early 2026 to assess whether the trend continues.

The services sector plays a crucial role in India’s overall economic performance, contributing significantly to employment and GDP. Any prolonged weakness could have wider implications for consumption and growth.

Policy experts believe that supportive fiscal measures, stable inflation, and improved consumer sentiment could help the sector regain momentum in the coming months.