Summary:

According to S&P Global's HSBC India Services PMI, India's services industry expanded strongly in February 2025, driven by robust domestic and international demand. The PMI rose to 59 from 56.5 in January, marking 43 consecutive months above the neutral 50 level. New orders surged, boosting output and employment, while foreign sales grew at their fastest pace in six months.

Despite cost pressures, inflation dropped to a four-month low, stabilizing output prices. Since December 2005, Indian service firms have hired at a record pace to meet demand, adding both full time and part-time employees. Strong demand, productivity gains, and improved business sentiment fueled optimism, though confidence slightly declined after August 2024. Pranjul Bhandari of HSBC emphasized the crucial role of global demand in India's service sector growth.

Source: IBEF 

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