India’s Services PMI Accelerates, Achieving 10‑Month High in June

India’s services sector expanded at its fastest pace in ten months in June 2025, driven by strong domestic and international demand. The HSBC India Services PMI, a key indicator of business activity, rose to 60.4 from 58.8 in May, signaling robust growth as values above 50 denote expansion. New orders surged, particularly in domestic markets, while export orders from Asia, the Middle East, and the US also grew, though at a slightly slower rate than the previous month.

The sector’s performance contributed to the HSBC India Composite PMI, which includes manufacturing and services, reaching a 14-month high of 61.0. Employment continued to grow, though at a moderated pace compared to May’s record levels. Easing input cost inflation allowed firms to improve margins, as output price increases outpaced rising raw material costs. Posts on X highlighted optimism about India’s economic momentum, with some users noting the services sector’s resilience amid global trade uncertainties, though specific claims about future growth remain unverified.

Despite a positive outlook, business confidence dipped slightly, with only 18% of service providers forecasting output growth in the next year, the lowest since mid-2022. The sector’s strength, combined with accelerated manufacturing activity, underscores India’s economic resilience amid global challenges like U.S. tariff uncertainties.

Published in SouthAsianDesk, July 3rd, 2025

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