India Services Purchasing Managers’ Index (PMI) hits 11-month high in July on strong export demand

India’s services sector remained resilient in July 2025, with the HSBC India Services Purchasing Managers’ Index (PMI) rising to an 11-month high of 60.5, slightly above June’s 60.4, as per S&P Global data. The uptick was driven by robust advertising, new client wins, and strong demand, alongside improved export orders from Asia, Canada, Europe, the United Arab Emirates (UAE), and the United States (US). Finance and insurance were the best-performing segments, while real estate and business services lagged. However, job creation slowed, with employment growth easing to its lowest level in 15 months, fewer than 2% of surveyed firms hired in July.
Price pressures strengthened as input and output costs rose due to higher food, freight, and labour expenses. Meanwhile, manufacturing activity also picked up, with the HSBC India Manufacturing PMI reaching a 16-month high of 59.1 in July, up from 58.4 in June, supported by solid gains in new orders and production. Despite this, business confidence and hiring softened. The composite PMI, which includes both services and manufacturing, increased marginally to 61.1, its fastest pace since April 2024. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.