In July 2025, India’s services industry witnessed a remarkable rebound, with the HSBC India Services Purchasing Managers’ Index (PMI) climbing to 60.5, an 11-month high. S&P Global released the data, which shows solid momentum in one of the country’s primary economic engines. A PMI number above 50 implies expansion, and July was the sector’s 48th consecutive month of growth.

Domestic sales remained solid while international demand surged. The new export business sub-index posted its second-best result in a year, indicating increased global interest in Indian service offerings. Finance, insurance, and information technology experienced significant increases in both new orders and output.

However, growth was not consistent. Real estate and business services lagged, which was most likely caused by cautious expenditure and project delays. While business activity remained healthy overall, employment growth dropped to its worst pace in 15 months. Rising food, freight and labour costs were widely reported, forcing businesses to pass some of the burden on to customers in the form of increased output prices.

Meanwhile, the Reserve Bank of India is projected to keep the repo rate at 5.50% in its early August meeting, though policy adjustments remain data-dependent.