Summary:

India’s services sector reached a three-month high in May, boosted by robust export growth. The HSBC India Services PMI rose to 58.8 from 58.7 in April, indicating strong expansion. Employment increased as businesses scaled up operations amid steady revenue growth. Input and output prices climbed above historical averages, pointing to rising inflation. The services sector, which accounts for more than half of India's GDP, contributed to 6.5% growth in FY25 and 9.2% in FY24. The RBI projects 6.5% growth in FY26, driven by rural demand and public investment. Meanwhile, industrial activity weakened, with the Manufacturing PMI slipping to 57.6 in May. The Composite PMI edged down to 59.3, reflecting slower factory output as services activity continued to rise.

Source: IBEF

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