India’s services sector surged in June, recording its highest growth in ten months and highlighting the country’s robust economic momentum. The latest HSBC India Services Purchasing Managers’ Index (PMI), compiled by S&P Global, rose to 60.4 in June, up from 58.8 in May, signaling strong expansion in business activity driven by increased demand and easing input costs.
The growth was fueled by a sharp rise in new business, both domestically and internationally. Export orders remained strong, with trade partners from Asia, the Middle East, and the United States contributing to overseas demand. This demonstrates India’s growing role as a key service provider in the global trade landscape.
While employment in the services sector continued to rise, the pace of hiring moderated slightly after May’s record levels. Input cost pressures eased to a ten-month low, and despite modest increases in staff wages, service providers were able to maintain price stability with output inflation aligning with historical averages.
The positive services performance complements India’s strong manufacturing output in June, with the composite PMI reaching 61.0—the fastest pace of expansion in over a year. This reinforces India’s economic resilience and attractiveness as a trade and investment hub, especially in service-oriented industries like IT, hospitality, and finance.
Despite a slight dip in business confidence for the year ahead, the country’s performance across both services and manufacturing sectors offers a promising outlook for continued trade activity and export growth in the region.
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