Due to strong demand, growth rate of service sector in March was at a high of 13 and a half years, PMI figures released

New export business grew at the fastest rate since the series began in September 2014. Survey participants reported benefits from Africa, Asia, Australia, Europe, the Americas and the Middle East. Service companies indicated that the surge in new business volumes had put a strain on their capabilities. For this reason, service providers recruited additional staff in March.

"While input costs have increased at a rapid rate, service providers have been able to maintain margins by charging higher output prices," the survey said. Going forward, service sector companies expect demand trends to remain favourable and marketing efforts to continue. "Also is seen as an opportunity for growth. However, there are some concerns about competitive pressures," the survey said.

The HSBC India Composite PMI Output Index increased from 60.6 in February to 61.8 in March. A weighted average of similar PMI indices for manufacturing and services makes up the composite PMI index. Based on official GDP figures, the weights indicate the relative sizes of the manufacturing and service sectors. India's total output increased significantly in March, according to data, with growth reported by both service and goods providers.