Latest news with #ServicesPMI
Mint
10-07-2025
- Business
- Mint
Services sector may catch up with merchandise exports in FY26
NEW DELHI : Even as global headwinds weigh on India's merchandise exports, the services sector is emerging as a vital cushion, delivering robust growth and helping anchor the country's external balance. At the current pace, services could catch up with merchandise exports in 2025-26, on an annual basis, marking a significant structural shift in India's external trade dynamics, showed figures shared by exporters. In the first five months of 2025, services exports rose 16% year-on-year to $173 billion, while the services trade surplus surged 21% to $90 billion, according to data from the Union commerce ministry, offering crucial support to the current account at a time of volatility in goods trade. Merchandise exports slipped 1.4% to $192.53 billion, and the trade deficit widened nearly 15% to $106.88 billion during the same period. The strong performance underscores the resilience of India's technology, consulting, financial, and business services, even as traditional goods trade remains vulnerable to a turbulent global landscape. Counterbalance June services exports are expected to post a multi-month high, bolstered by record output during the month. The HSBC India Services PMI, compiled by S&P Global, rose to a 10-month high of 60.4 in June, from 58.8 in May, reflecting strong sales, new orders, and buoyant demand. The index has remained well above the 50-mark, indicating continued expansion, since January. The Federation of Indian Export Organisations (FIEO) expects this momentum to continue in the coming months and sees services as a key growth engine in achieving the government's ambitious $1 trillion export target for 2025-26, up from $825 billion in the previous fiscal. 'We expect about a 24% annual increase in services exports in value terms in 2025-26, on the back of strong growth reported in recent months," said S.C. Ralhan, president, FIEO. 'For merchandise exports, we are expecting a 10% growth in 2025-26, but there is a condition: if the war (Russia-Ukraine) continues, it may come down to 5-6%," he added. In absolute terms, the FIEO projects services exports to reach around $476 billion in 2025-26, while merchandise exports are expected to range between $459 billion and $481 billion, indicating that services exports could catch up with goods exports by the end of the fiscal year. In 2024-25, merchandise exports stood at $437.42 billion, marginally higher than the $437.07 billion recorded in the previous year, while services exports rose to $383.51 billion from $341.06 billion. 'The merchandise exports depend on several global factors, like the ongoing wars and US trade tariffs. We do expect the Indian government to sign a bilateral trade agreement with the US soon," Ralhan said. 'However, services exports will not be impacted as the agreement mainly deals with merchandise trade," he added. A spokesperson of the ministry of commerce didn't respond to emailed queries. Leading services exports Software and IT services, classified under telecommunications, computer, and information services, account for around $150 billion annually, roughly half of India's total services exports, according to the New Delhi-based think tank Global Trade Research Initiative (GTRI). Other business services, including consultancy, engineering, R&D, and technical services, follow, contributing about $80 billion, or a quarter of overall services exports. 'The growth in this sector is mainly driven by the rise of global capability centres (GCCs) in India," the GTRI report noted. Meanwhile, India Ratings expects services trade to largely remain insulated from tariffs, though the broader uncertainty in global trade could cast a shadow on the sector. 'The global trade in commercialservicesgrew at a healthy 6.8% on-year in 2024. The globalservicesPMI moderated to 52.0 in May 2025 from 53.8 in December 2024. However, it has remained in expansion for the past 29 months," India Ratings said in a recent report. However, the rating agency expects theservicestrade surplus to moderate to around $48 billion in 1QFY26. The World Trade Organization (WTO) also expects global services trade volume to grow 4% on-year in 2025, lower than its earlier baseline forecast of 5.1%. This follows a strong 6.8% growth in global commercial services trade in 2024.
Time of India
03-07-2025
- Business
- Time of India
Services activity rises to 10-month high
New Delhi: India's services sector activity rose to a 10-month high of 60.4 in June, fuelled by rising domestic orders and growth in international sales, according to a private survey released Thursday. The HSBC India Services Business Activity Index was 58.8 in May and 60.5 in June 2024. Services companies ended the first quarter of this fiscal year on a strong footing, with an average Purchasing Managers' Index (PMI) reading of 59.3. However, it was lower than 60.5 recorded in the same quarter last year. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Dukung Orang Terkasih Menghadapi Limfoma: Mulai Di Sini Limfoma Baca Undo Companies attributed the rise to positive demand trends and continued sales improvement. "Services PMI business activity index was up to a 10-month high, led by a sharp rise in new domestic orders," said Pranjul Bhandari, chief India economist at HSBC. Live Events While services companies remained optimistic about the future growth, with 18% forecasting expansion, the share of upbeat firms was the lowest since mid-2022. "Service providers remained optimistic about future growth, though their confidence faded a tad," said Bhandari. June saw the fastest growth in new orders since August 2024. "Services companies benefited most from the continued strength of the domestic market, alongside a marked increase in new export business," the survey said. Across sectors, finance & insurance recorded the highest growth. The slowest expansion, for both output and new orders, were in real estate and business services. International demand also improved, especially from Asia, the Middle East and the US, according to survey respondents. "New export orders also expanded, albeit at a softer pace," noted Bhandari. Growth in the services sector boosted hiring, with employment rising for the 37th month in June. Input cost inflation fell to a 10-month low in June. Where expenses increased, panellists cited greater staff salaries and wages. "Several service providers noted that they had maintained sufficient pricing power to pass on higher costs to clients," the survey said. Although charge inflation eased from May, it remained above the long-term trend. Among sectors, cost pressures were strongest in the consumer services category. In output charges, the fastest upturn was noted in finance & insurance.
Economic Times
03-07-2025
- Business
- Economic Times
Services activity rises to 10-month high
India's services sector experienced robust growth in June, reaching a 10-month high with a PMI of 60.4, driven by strong domestic orders and increased international sales. While optimism remains, confidence among service providers has slightly decreased since mid-2022. The finance and insurance sectors led the expansion, accompanied by growth in hiring and a decrease in input cost inflation. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads New Delhi: India's services sector activity rose to a 10-month high of 60.4 in June, fuelled by rising domestic orders and growth in international sales, according to a private survey released HSBC India Services Business Activity Index was 58.8 in May and 60.5 in June companies ended the first quarter of this fiscal year on a strong footing, with an average Purchasing Managers' Index (PMI) reading of 59.3. However, it was lower than 60.5 recorded in the same quarter last attributed the rise to positive demand trends and continued sales improvement."Services PMI business activity index was up to a 10-month high, led by a sharp rise in new domestic orders," said Pranjul Bhandari, chief India economist at services companies remained optimistic about the future growth, with 18% forecasting expansion, the share of upbeat firms was the lowest since mid-2022."Service providers remained optimistic about future growth, though their confidence faded a tad," said saw the fastest growth in new orders since August 2024. "Services companies benefited most from the continued strength of the domestic market, alongside a marked increase in new export business," the survey sectors, finance insurance recorded the highest growth. The slowest expansion, for both output and new orders, were in real estate and business demand also improved, especially from Asia, the Middle East and the US, according to survey respondents."New export orders also expanded, albeit at a softer pace," noted in the services sector boosted hiring, with employment rising for the 37th month in cost inflation fell to a 10-month low in June. Where expenses increased, panellists cited greater staff salaries and wages."Several service providers noted that they had maintained sufficient pricing power to pass on higher costs to clients," the survey charge inflation eased from May, it remained above the long-term trend. Among sectors, cost pressures were strongest in the consumer services category. In output charges, the fastest upturn was noted in finance & insurance.
Time of India
03-07-2025
- Business
- Time of India
India's services recovery gains pace: PMI at highest since August 2024; export demand stays strong
This is an AI-generated image, used for representational purposes only. India's services sector expanded at its fastest pace in ten months in June, driven by robust domestic demand, higher international sales, and continued job creation, according to the HSBC India Services PMI report released Thursday. The seasonally adjusted Services PMI Business Activity Index rose to 60.4 in June from 58.8 in May, marking its strongest reading since August 2024. In PMI terms, a score above 50 signals growth, while a figure below that threshold points to 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,' said Pranjul Bhandari, chief India economist at HSBC, as per PTI. She noted that margins improved as the increase in input costs remained lower than the hike in output prices. June saw the fastest expansion in new business orders since August 2024, with firms citing stronger domestic activity and increasing overseas demand, particularly from Asia, the Middle East, and the US. This uptick in demand also reflected positively on employment. The survey recorded the 37th consecutive month of job growth, although the pace of hiring was slightly lower than May's record high. Despite this, the hiring rate stayed above the long-term average. International sales continued to grow, and export orders remained among the highest since this metric began in 2014, reported ANI . However, the month-on-month increase in overseas orders was the slowest in three months. Sector-wise, Finance and Insurance led growth in both output and orders, while Real Estate and Business Services posted the slowest expansion. On the cost front, Consumer Services firms faced the steepest input inflation, whereas Finance and Insurance firms recorded the fastest rise in output prices. Inflationary pressures showed signs of cooling. Input costs rose at the slowest pace in ten months, and output charge inflation softened from May, though still above the historical average. Some firms noted increased staff wages but were able to pass on costs due to strong pricing power. The broader private sector also reflected this momentum, with the HSBC India Composite PMI Output Index rising to 61.0 in June, its highest in 14 months. This index combines manufacturing and services data, weighted by sector contribution to GDP. Despite strong numbers, optimism among service providers moderated. 'Service providers remained optimistic about future growth, though their confidence faded a tad,' Bhandari said, citing that only 18% of respondents expected output growth in the coming year, the lowest since mid-2022. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Business Upturn
03-07-2025
- Business
- Business Upturn
India's services sector growth hits 10-month high in June as demand strengthens
By Aditya Bhagchandani Published on July 3, 2025, 10:49 IST India's services sector saw robust expansion in June 2025, with business activity rising at its fastest pace in 10 months, driven by strong domestic demand and improving export orders. The HSBC India Services PMI® Business Activity Index climbed to 60.4, up from 58.8 in May, according to the latest survey by S&P Global. A reading above 50 indicates expansion. Service providers reported the sharpest rise in new orders since August 2024, supported by solid growth in both domestic and international markets, particularly from Asia, the Middle East, and the US. Notably, the pace of export growth was among the strongest since records began, though slightly lower than in previous months. Price pressures continued to ease, with input and output price inflation softening to a 10-month low. Employment in the sector grew for the 37th consecutive month, although the pace of job creation moderated from May's record levels. Finance & Insurance led sectoral growth in June, while Real Estate & Business Services lagged behind. On the outlook, service providers remained optimistic about future growth, though overall confidence dipped slightly compared to previous months. Key highlights: Business Activity Index rose to 60.4 in June (58.8 in May) New orders increased at the fastest rate in nearly a year Export orders strong, despite a slight slowdown from May Input cost inflation at a 10-month low; firms maintained pricing power Job creation continues, though at a slower pace Finance & Insurance sector remains the top performer According to Pranjul Bhandari, Chief India Economist at HSBC: 'The Services PMI business activity index was up to a ten-month high, led by a sharp rise in new domestic orders. Margins improved as the rise in input costs was below that seen for output charges.' The data reflects broad-based resilience in India's private sector, with the HSBC India Composite PMI Output Index — combining manufacturing and services — also reaching a 14-month high of 61.0 in June. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
