India’s services sector recorded its fastest growth in 10 months this June, powered by a sharp rise in new business orders, both domestic and international. The latest HSBC India Services Purchasing Managers’ Index (PMI) jumped to 60.4, up from 58.8 in May, signaling strong demand conditions across the economy.
A score above 50 in the PMI indicates expansion, and June’s reading marks the highest since August 2024.
According to the survey, companies saw a significant increase in new work, particularly from local clients. Export demand also grew steadily, although at a slightly slower pace compared to May. This steady stream of new orders encouraged businesses to expand their workforce, leading to higher job creation in the services sector.
Economists noted that while business activity and employment strengthened, input and output prices rose at a slower pace, offering some relief from inflation concerns. However, business optimism fell slightly in June as firms remained cautious about future conditions.
The broader Indian economy is also showing strength, with the composite PMI—covering both manufacturing and services—reaching a 14-month high. This suggests a solid start to the second quarter of FY25.
