New Delhi: Services sector activity in India witnessed a sharp uptick in February. This upward movement was boosted by improving domestic and international demand, which resulted in a quicker expansion in output and a substantial increase in employment.
The seasonally adjusted HSBC India Services PMI Business Activity Index rose from January’s 26-month low of 56.5 to 59.0 in February. In the Purchasing Managers’ Index (PMI) parlance, a print above 50 means expansion, while a score below 50 denotes contraction.
‘India’s services business activity index rose to 59.0 in February 2025, up considerably from January’s 26-month low of 56.5. Global demand, which grew at its fastest pace in six months according to the new export business index, played a major role in driving output growth for India’s services sector,’ said Pranjul Bhandari, Chief India Economist at HSBC.
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Meanwhile, the HSBC India Composite Output Index rose from 57.7 to 58.8, indicating a substantial rate of expansion. Composite PMI indices are weighted averages of comparable manufacturing and services PMI indices. Weights reflect the relative size of the manufacturing and service sectors, according to official GDP data.
The HSBC India Services PMI is compiled by S&P Global from responses to questionnaires sent to a panel of around 400 service sector companies.
On the domestic macroeconomic front, the Indian economy grew by 6.2 per cent in the December quarter, recovering sequentially from seven-quarter low. For the full 2024-25 fiscal (April 2024 to March 2025), the government now pegs GDP growth at 6.5 per cent, marginally higher than its initial estimate of 6.4 per cent but below the revised growth rate of 9.2 per cent for 2023-24.
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