India's Services PMI Hits 15-Year High in August at 62.9

Mumbai, 3 Sept 2025: India’s services sector grew at its quickest rate in 15 years in August, highlighting the strength of the economy despite global challenges. Domestic demand led the rally with strong demand, increased business activity, and a steep increase in new orders. Experts say the high print again boosts India’s standing as the speediest major economy.

Domestic and Export Orders Push Services PMI to 62.9, Highest Since June 2010

The HSBC India Services PMI, which is put together by S&P Global, increased to 62.9 in August from July’s 60.5, its highest reading since June 2010. Expansion was underpinned by sharp improvements in conditions of demand and international sales, also recording one of the strongest increases on record. Export orders were especially robust from Asia, Europe, the Middle East, and the US, to extend the sector’s global outreach.

Input Price Inflation at 9-Month High as Services Firms Step Up Hiring and Raise Output Prices

The boom in activity spurred services companies to accelerate recruitment, though it also initiated cost pressures. Input price inflation jumped to a nine-month high, while output prices increased at a pace not seen since July 2012. Even so, demand remained robust enough for firms to raise prices paid by customers without undermining growth momentum.

HSBC Composite PMI Climbs to 63.2 in August, Marking Strongest Expansion in Over 17 Years

Business sentiment picked up sharply, with expectations for the coming year reaching a combined five-month high. Firms singled out recent hiring, capacity additions, and growing in marketing as leading indicators of optimism. The HSBC Composite PMI, which is a blend of manufacturing and services, also rose to 63.2, its highest level in more than 17 years, reflecting widespread economic momentum.

The positive PMI readings follow hard on the heels of India’s 7.8% Q1 FY26 GDP growth, reaffirming faith in the growth path of the country. But threats lurk from accelerating inflationary pressures and international trade uncertainty, particularly in the wake of fresh US tariffs on Indian exports. But economists argue that the robust domestic demand base will continue to cushion the economy from external shocks in the short term.

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