New Delhi, Feb. 5 -- India's services sector expanded at its slowest pace in over two years in January 2025, as new business growth weakened and demand momentum softened, according to the HSBC India Services PMI data released on Wednesday.

However, job creation saw a notable uptick and business sentiment remained positive despite heightened cost pressures.

But, despite the slowdown, the HSBC Services PMI data suggests that India's services sector remains resilient, with solid job creation, strong export growth, and steady business confidence. However, inflationary pressures and rising competition could act as headwinds in the coming months.

Pranjul Bhandari, Chief India Economist at HSBC, said, "India's services sector lost growth mome...