Business EconomyPosted at: Aug 5 2025 6:43PM


India’s service sector soars, business activity hits 11-month high

New Delhi, Aug 5 (UNI) India’s service sector witnessed an optimistic growth as HSBC India Services Business Activity Index or Services Purchasing Managers Index (PMI) rose to 60.5, which is a slight increase from June’s 60.4. It is the strongest performance marked since August 2023. The report also noted ongoing improvements in demand for Indian services driven by total new orders, international sales, and output.
Pranjul Bhandari, Chief India Economist, HSBC, said, “ At 60.5, the services PMI indicated a strong growth momentum, led by a pick-up in new export orders. Future optimism rose but remained below 1H25 levels.”
This report further noted that the Indian service sector received a strong demand globally with a sharp rate of expansion in external sales and the second-fastest in a year (behind May). The major regions were Asia, Canada, Europe, the UAE, and the US. Finance and Insurance emerged as the best-performing sectors this month.
When asked about the output expectations from the survey participants, they were moderately optimistic and pointed out some factors, including business efficiency, marketing, tech innovation, and growing online presence.
“ Qualitative data pointed to greater food, freight, and labour costs. The rate of inflation also quickened from June, though it remained mild in terms of historical data,” the report noted.
Moreover, the PMI results pointed towards the robust service sector growth with a slight backward move in job creation and business optimism. While the report also highlighted the inflationary trends.
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Tags: #India’s service sector soars# business activity hits 11-month high
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