India’s Services Sector Sees Strongest Growth In 10 Months Driven By Robust Demand And Easing Price Pressures

India’s services sector recorded its fastest expansion in ten months in June 2025, driven by strong domestic and export demand, along with easing price pressures, according to the HSBC India Services Purchasing Managers’ Index (PMI) compiled by S&P Global, Economic Times reported.

The final services PMI rose to 60.4 in June from 58.8 in May.

A PMI reading above 50 indicates expansion in activity, while a reading below signals contraction.

The rise was fuelled by a sharp increase in the new business sub-index, reflecting sustained domestic strength, and stable export orders—especially from Asian, Middle Eastern, and US markets.

While the strong demand supported continued job creation, employment growth slowed slightly from May’s peak.

Output price inflation also moderated, aligning with historical averages.

Despite this growth, business sentiment for the year ahead fell to its lowest level in over two years, indicating concerns about future demand.

The HSBC India Composite PMI, which includes both services and manufacturing, rose to 61.0 in June, up from 59.3 in May, marking the fastest expansion in 14 months.

The manufacturing PMI data released this week reportedly showed factory activity growth accelerated in June, complementing the robust services performance.