Indian services sector growth touches 10-month high in June on sharp upturn in new business: PMI
The seasonally adjusted HSBC India Services PMI Business Activity Index rose from 58.8 in May to 60.4 in June, driven by sharp upturn in new business orders.
In the Purchasing Managers' Index (PMI) parlance, a print above 50 means expansion, while a score below 50 denotes contraction.
"The Services PMI business activity index was up to a ten-month high, led by a sharp rise in new domestic orders. New export orders also expanded, albeit at a softer pace. Margins improved, as the rise in input costs was below that seen for output charges," Pranjul Bhandari, Chief India Economist at HSBC, said.
New orders expanded at the quickest rate since August 2024. Services companies benefited most from the continued strength of the domestic market, alongside a marked increase in new export business.
Overseas demand particularly improved from the Asian, Middle Eastern and U.S. markets, according to panel members.
The ongoing expansion of the Indian service sector had a positive impact on recruitment. Employment rose for the 37th consecutive month in June, with the rate of job growth outpacing its long-run average despite slowing from May's record.
On the price front, the survey said, cost pressures were most intense in the consumer services category, while the fastest upturn in output charges was noted in the finance and insurance segment.
As per the survey, optimism regarding the outlook for output levels in one year time was sustained, with 18 per cent of service providers forecasting growth. This proportion of upbeat firms was, however, the lowest since mid-2022. Hence, the overall level of confidence fell and was below its long-run average.
"Service providers remained optimistic about future growth, though their confidence faded a tad," Bhandari added.
Meanwhile, the HSBC India Composite PMI Output Index rose from 59.3 in May to 61 in June, indicating the fastest rate of expansion in 14 months.
Composite PMI indices are weighted averages of comparable manufacturing and services PMI indices. Weights reflect the relative size of the manufacturing and service sectors according to official GDP data.
As per the survey, prices charged by private sector companies rose at the slowest pace in three months at the end of the first fiscal quarter. Concurrently, cost burdens increased at the weakest rate since August 2024. For both indicators, slowdowns were broad-based across the manufacturing and service economies.
The HSBC India Services PMI is compiled by S&P Global from responses to questionnaires sent to a panel of around 400 service sector companies.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hans India
36 minutes ago
- Hans India
Why are we still preparing students the old way?
A silent revolution is underway in India's job market. The tectonic shifts in the global economy, the emergence of digital-first industries, and the post-pandemic recalibration of work have brought dramatic changes to employment trends in the country. While job postings in India have surged by nearly 9 percent in May 2025, ending a prolonged dip, this revival is not just about numbers—it is about transformation. India today stands nearly 80 percent above its pre-pandemic job posting volumes, ranking among the world's top-performing labour markets. Yet, amid this progress, an unsettling paradox persists. Despite this growth, 77 percent of Indian professionals report being underprepared for the very skills employers demand. The educational system, meanwhile, continues to churn out graduates whose abilities align more with yesterday's jobs than with tomorrow's needs. This disconnect between market reality and academic training is not just unfortunate—it is unsustainable. Curriculum Inertia The rigidity of India's education system remains one of its most critical barriers to future readiness. For decades, curricula across institutions have followed a model optimized for the industrial age—rote learning, standardized testing, and theoretical instruction with limited practical exposure. This traditional template fails to keep pace with the rapidly evolving demands of modern employers who prioritize creativity, problem-solving, adaptability, and digital fluency. Despite scattered efforts at reform, the dominant model remains static, divorced from industry requirements. Colleges still treat coding, data analytics, and digital marketing as electives rather than essentials. Even vocational training programs suffer from outdated modules and lack the agility to adapt to emerging skills. As a result, many graduates leave university ill-equipped to participate in or contribute meaningfully to India's knowledge-based economy. Industrialization 4.0 The advent of the fourth industrial revolution has redrawn the global employment map. Powered by artificial intelligence, machine learning, cloud computing, and the Internet of Things, Industry 4.0 is reconfiguring every sector—from manufacturing and logistics to healthcare and finance. Automation is not a distant threat but a present force. The World Economic Forum predicts that 83 million jobs will be displaced globally by next year, while 70 million new roles will emerge in domains requiring high digital competency. India, with its youthful workforce, could seize this opportunity—if adequately prepared. Yet, the lack of forward-looking education and structured skill development means that the promise of Industry 4.0 could bypass a significant segment of the Indian workforce. Bridging this gap requires more than token digital literacy modules; it demands a structural overhaul in how institutions envision, teach, and assess future skills. The Skills Deficit India's employment boom masks a deeper concern—one of qualification, not availability. The skills deficit is both wide and deep. Nasscom's findings show that half of India's workforce—about 150 million people—will need reskilling or upskilling by 2025. This is not just a technological challenge but a pedagogical one. Employers increasingly look for hybrid capabilities where technical skills merge with soft skills like emotional intelligence, collaboration, and decision-making. Yet, most educational institutions still overemphasize theoretical knowledge while undervaluing hands-on learning and interdisciplinary approaches. Without realignment, the economy may experience a dual crisis—youth unable to find suitable employment, and industries struggling to find job-ready candidates. A skills-first strategy must now become the backbone of educational policy and institutional vision. Pathways Forward Fixing this imbalance calls for a radical rethink of how education interacts with work. It is time for industry and academia to co-create dynamic learning ecosystems. Apprenticeships, live projects, and industry-certified micro-credentials should become integral to academic pathways. Policy incentives must support institutions that embed employability frameworks into their programs. Additionally, the idea of education as a one-time pursuit must give way to lifelong learning, with flexible opportunities for working professionals to upgrade skills continuously. While India's job market is expanding with promise, that promise will be short-lived unless matched by a workforce that is both aspirational and adequately prepared. To truly capitalise on its demographic dividend, India must stop preparing students for the world that was and start readying them for the one that is rapidly taking shape. (The author is Senior Director of PrepInsta)
The Wire
36 minutes ago
- The Wire
Sparsh CCTV, Innoviz Technologies and Cron AI partner to offer Security and Intelligent Transport System (ITS) Solution Across India
The collaboration aims to deploy LiDAR-camera perception nodes for perimeter and area monitoring across India unlocking real-time, edge-native intelligence for critical infrastructure NEW DELHI, July 15, 2025 /PRNewswire/ -- Sparsh CCTV, one of India's leading manufacturers of smart cameras and integrated surveillance solutions with multiple government and enterprise clients in India, Innoviz Technologies Ltd. (NASDAQ: INVZ), a global automotive leader in LiDAR solutions, and Cron AI, a leading deep learning 3D perception provider, announced today the collaboration to offer an integrated LiDAR-camera-vision perception platform, purpose-built for large-scale deployment across transport, perimeter security, railways and critical infrastructure. The announcement comes at a time when India's perimeter security sector is valued at USD 3.23 billion (2022) and projected to grow at a CAGR of 14% through 2030¹. The intelligent transport market, currently worth USD 1.44 billion (2024), is expected to more than double by 2033². Meanwhile, railway modernization and infrastructure investments exceed USD 1.3 billion³, driven by national programs like DFCCIL and Kavach. Together, these sectors represent over USD 1 billion⁴ in addressable opportunity for edge-native LiDAR-camera systems — with massive scaling potential through 2030. With a footprint across 120 cities, a network of 2,000 partners and an annual production capacity of 500,000 security devices, Sparsh will lead go-to-market efforts, support integration and explore local manufacturing for the unified sensing platform. The edge-native perception nodes — combining high-performance LiDAR, deep-learning perception, and vision analytics — are expected to be a part of security infrastructure upgrade project which is planned to go live at critical infrastructure across India. These systems are intended to deliver real-time insights into vehicle movement, pedestrian safety and perimeter activity — all processed on the edge, without reliance on cloud compute or high-power infrastructure. "This partnership marks a major leap in how India can deploy high-performance, real-time sensing at scale," said Sanjeev Sehgal, Founder and MD of SparshCCTV. "By integrating global best-in-class LiDAR and 3D perception into our portfolio, we're equipping our customers across cities, industries, and government with intelligent systems that are built for Indian conditions and ready to scale." The integrated platform takes into account the complexities of Indian outdoor environments — heat, dust, glare, fog, and electrical instability and delivers continuous, low-latency awareness at the edge. • InnovizSMART LiDAR delivers long-range, high-resolution, uniform 3D coverage, built to perform in harsh weather and lighting conditions • Cron AI's senseEDGE processes every point in the LiDAR cloud using deep learning — not clustering — for greater accuracy, richer context, and consistent performance. It runs at just 8 watts, with no GPU or external infrastructure • Sparsh's vision systems contribute intelligent classification, layered redundancy, and real-time visual analytics — enhancing overall system reliability Together, they create a true sensor fusion platform, where 3D point cloud, video vision and edge-native AI combine to deliver next-gen situational awareness, deployable in the near future. "India's infrastructure needs intelligence that's fast, reliable, and frictionless," said Tushar Chhabra, Founder and CEO - Cron AI."We built senseEDGE for exactly this kind of real-world complexity. With Sparsh and Innoviz, we are making 3D perception truly scalable across India's cities and critical infrastructure." "Innoviz is proud to bring our rugged, automotive-grade LiDAR technology to one of the world's fastest growing infrastructure markets," said Omer Keilaf, CEO and Co-founder - Innoviz Technologies. "Paired with Cron AI's powerful edge-native perception and Sparsh's national reach, we are going to enable real-time intelligence for India's transport, security, and smart city initiatives." From intersections, railways to critical infrastructure and perimeters, this is the future of sensing in India — real-time, intelligent, and built for deployment at scale. About Sparsh CCTV Sparsh is India's first STQC-certified CCTV camera brand and a leader in vision-based security. With operations in 120 cities, exports to 10 countries, and a partner network of 2,000 , Sparsh manufactures and deploys over half a million devices annually across sectors like law enforcement, transport, and critical infrastructure. About Cron AI Cron AI is a deep tech company transforming 3D perception for real-world infrastructure. Its platform, senseEDGE, uses deep learning to interpret every point in a LiDAR cloud — delivering accurate, robust insights on just 8 watts of edge compute. Offered via a Data-as-a-Service (DaaS) model, Cron AI makes real-time 3D intelligence easy to deploy and scale. About Innoviz Technologies Innoviz is a global leader in LiDAR technology, serving top-tier automotive and industrial partners. Its solid-state LiDAR sensors and software meet the highest standards for safety, performance, and reliability — and are trusted worldwide across transport, defense, and autonomous systems. Footnotes & Sources 1. Grand View Research – India Perimeter Security Market Outlook 2. Astute Analytica via GlobeNewswire – India ITS Market Forecast 3. See: Indian Railways CapEx Budget, DFCCIL Project, Kavach – PIB 4. Cron AI internal market sizing estimate based on infrastructure deployment potential and edge native perception opportunity Photo: (Disclaimer: The above press release comes to you under an arrangement with PRNewswire and PTI takes no editorial responsibility for the same.).
Mint
39 minutes ago
- Mint
SMFG said to eye $1.1 billion additional deal for Yes Bank
(Bloomberg) -- Sumitomo Mitsui Financial Group Inc. is considering making an additional $1.1 billion investment in Indian lender Yes Bank Ltd., people familiar with the matter said, following a previous investment made by Japan's second-biggest bank two months ago. SMFG is seeking to acquire about 5% of Yes Bank shares from US investment fund Carlyle Group Inc. and other minority shareholders, the people said, asking not to be identified because the deliberations are private. SMFG may also buy about $680 million in convertible bonds issued by Yes Bank to help boost growth, the people said. The fresh investment would bring the total amount to $2.7 billion, giving SMFG a roughly 25% stake in Yes Bank, the people said. Considerations are ongoing and no final decisions have been made, they said. Representatives for Sumitomo Mitsui Banking Corp., the banking unit of SMFG, Carlyle and Yes Bank declined to comment. Yes Bank shares extended their gains to as much as 3.3% in Mumbai trading on Tuesday, their biggest intraday jump in more than a month, before paring some of them. The stock has added roughly 3% this year, giving the bank a market value of about $7.4 billion. Dealmaking in India is accelerating as global companies and investors seek to tap the country's growth. The volume of mergers and acquisitions involving Indian companies has reached $31 billion, a 14% increase from a year earlier, according to data compiled by Bloomberg. SMFG in May agreed to acquire a 20% stake in Yes Bank for about $1.6 billion. For Japan's second-biggest lender, Yes Bank represents an opportunity to own a sizeable stake in a large Indian firm. Yes Bank has made a steady turnaround following a rescue by the central bank in 2020 when it was inundated with bad loans, and SBI had to inject new capital with other parties. Sumitomo Mitsui and its Japanese peers have been sealing deals in India. It spent $700 million in March last year to take full control of the local company formerly known as Fullerton India Credit Co. after first buying a $2 billion stake in 2021. The unit specializes in housing and car loans. Disclaimer: This story has been published from a wire agency feed without modifications to the text.
