India’s services sector maintained steady growth in May 2025, supported by strong demand and record hiring, according to the latest HSBC India Services PMI report.
The Purchasing Managers’ Index (PMI) for services stood at 58.8, slightly up from 58.7 in April, marking 46 consecutive months of expansion. The 50-mark separates growth from contraction, and India’s services sector has consistently remained above this threshold.
- Record Hiring: Nearly 16% of surveyed firms increased their workforce, marking the highest employment growth in the survey’s history.
- Rising Costs: Companies faced higher expenses for materials, cooking oil, meat, and overtime wages, leading to strong input price inflation.
- Business Confidence Rebounds: After dipping to a 23-month low in April, optimism improved due to expanding client bases and marketing efforts.
Despite cost pressures, the services sector’s resilience continues to support India’s economic momentum. The Reserve Bank of India (RBI) is expected to cut interest rates further, following a 50 basis point reduction earlier this year.
