India’s Services Sector Hits 15-Year High in August, PMI Rises to 62.9
Service Sector: India's service sector reached a 15-year high in August 2025. HSBC India Service PMI was 62.9, the fastest growth since June 2010. Employment increased due to a sharp increase in new demand and orders. Inflation reached a 9-month high due to rising input-output costs. The overall PMI also remained at a 17-year high of 63.2.
Now the country's service sector activities have increased to a 15-year high in August 2025 after the excellent performance of the manufacturing sector. The service sector has recorded record growth on the back of rapid growth in new orders and production amid a significant improvement in demand. On Wednesday, the seasonally adjusted HSBC India Service PMI business activity index released reached 62.9 last month. This is the fastest pace of expansion since June 2010. This figure was 60.5 in July. HSBC Chief Economist (India) Pranjul Bhandari said a broad expansion in international sales boosted overall demand.
This led Indian companies in the service sector to hire additional employees. Due to high labor costs and strong demand, the inflation rate reached a nine-month high due to a significant increase in the prices of both inputs and outputs. Meanwhile, the surge in demand made possible the fastest increase in production charges since July 2012. According to the data, the overall PMI reached a 17-year high of 63.2 in August. It indicates strong and broad production growth in both manufacturing and service sectors. The service PMI is prepared on the basis of answers to questions sent to a group of 400 companies.
Bhandari said, international sales recorded the third fastest growth since the series began in September 2014. Companies received new export orders from Asia, Europe, the Middle East, and America. Meanwhile, service sector companies' expectations of production growth in the coming years rose to a five-month high. Some companies believe that hiring in recent months will lead to more work.
