How does the Indian service sector maintain strength in July amid growth in orders and global sales?
Click to start listening
Synopsis
The Indian service sector continues to thrive as demand surges, leading to impressive growth in orders and international sales. A recent HSBC report reveals significant advancements in business activity for July, highlighting optimism among service providers for the future.
Key Takeaways
- PMI of 60.5 indicates strong service sector growth.
- Finance and Insurance sector leads in performance.
- Increased international demand from various regions.
- Optimism among service providers for future growth.
- Advertising and marketing are key growth drivers.
New Delhi, Aug 5 (NationPress) The persistent rise in demand for the Indian services sector has significantly bolstered the growth of overall new orders, global sales, and production in July, as indicated by a report released on Tuesday.
The seasonally adjusted Services PMI Business Activity Index stood at 60.5 in July, showing minimal variation from 60.4 in June, which reflects another notable increase in production, according to the HSBC India Services PMI report for the month.
This rate of growth marks the most robust expansion since August 2024, the report noted.
"With a PMI of 60.5, the services sector showcases a strong growth trajectory, primarily driven by an uptick in new export orders. While future optimism has increased, it is still below the levels seen in the first half of 2025," stated Pranjul Bhandari, Chief India Economist at HSBC.
In terms of pricing, both input and output costs experienced a slight uptick compared to June, although this trend may shift in the coming period, as suggested by the recent CPI and WPI data, Bhandari added.
Survey participants indicated that the sustained rise in new business intakes was the primary driver of output growth, according to the report.
Factors such as advertising, strong demand, and the onboarding of new clients all contributed to the latest surge in new orders.
July's increase was pronounced and marked the second-fastest growth in nearly a year, only trailing behind June, the report highlighted.
Indian service providers also reported a notable enhancement in international demand for their offerings.
They acquired new contracts from regions including Asia, Canada, Europe, the UAE, and the US. The growth rate in external sales was sharp and the second-fastest in a year, following May, as noted in the report.
The Finance and Insurance sector emerged as the top performer in terms of new orders and business activity, while the Real Estate and Business Services sector recorded the slowest growth.
The report indicates that service providers remain optimistic about the year ahead.
Factors bolstering business confidence include efficiency improvements, marketing efforts, technological innovation, and an expanding online presence, the report concluded.
Point of View
I believe that the latest report on India's service sector illustrates a positive trajectory, emphasizing the resilience and adaptability of businesses amid global challenges. It is essential to stay informed about these developments as they shape the economic landscape of our nation.
NationPress
19/08/2025
Frequently Asked Questions
What is the current PMI of the Indian services sector?
The current PMI of the Indian services sector is 60.5 for July, indicating strong growth.
Which sector showed the best performance in July?
The Finance and Insurance sector was the best-performing sector in terms of new orders and business activity.
What factors are contributing to the growth of the Indian service sector?
Factors contributing to the growth include increased demand, new client onboarding, and improvements in marketing and technology.
How does international demand impact the Indian service sector?
A stronger international demand has led to significant new contracts from regions like Asia, Canada, Europe, and the US.
What are the expectations for the Indian service sector in the upcoming months?
Service providers remain optimistic about future growth, driven by efficiency gains and a growing online presence.
