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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.
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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.
