Services sector growth hits 15-year high in August on robust demand
- IBEF
- September 4, 2025
India’s services sector expanded at its fastest pace in 15 years in August 2025, with the HSBC India Services Purchasing Managers' Index (PMI) rising to 62.9 from 60.5 in July 2025, according to S&P Global. This marked the third straight month the index stayed above 60, driven by surging new orders, stronger international sales, and efficiency gains. Firms cited buoyant demand and greater business inflows as key factors, while hiring activity continued, though at a moderated pace. The sector has now logged 49 consecutive months above the neutral 50 mark, reflecting sustained momentum.
The survey also highlighted that robust demand allowed firms to pass on higher labour and operating costs to clients, pushing prices to their steepest rise in over 13 years. The services' strength mirrors resilience in manufacturing, which also saw its fastest expansion in nearly 18 years in August, lifting the composite PMI to a 17-year high of 63.2. The upbeat data follows the National Statistics Office’s estimate of 7.8% Gross Domestic Product (GDP) growth in Q1 FY26, reinforcing India’s position as the world’s fastest-growing major economy.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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