India Services PMI Remains Strong at 58.8 in May, Driven by Robust Demand
India’s services sector maintained its high pace of growth in May, driven by strong demand for exports, which also saw firms increase staff hiring to an all-time high during the month, according to the latest HSBC survey.
The seasonally adjusted HSBC India Services Purchasing Managers’ Business Activity Index (PMI) registered 58.8 in May. This was broadly in line with April’s reading of 58.7 and therefore signalled another sharp rate of expansion. The survey states that growth was reportedly underpinned by healthy demand conditions, new client wins and greater staffing capacity.
Notably, companies observed a near-record improvement in international demand for their services during May. Over the course of the survey’s 19-and-a-half-year history, faster increases in new export orders were only recorded in May and June 2024. When citing sources of growth, firms mentioned Asia, Europe and North America in particular, the survey said.
Similar to the trend for output, new orders rose at a sharp pace that was largely aligned with those registered from February to April. To accommodate ongoing expansions in new business, service providers continued to recruit additional staff, the survey added.
Price gauges showed an intensification of input cost and output charge inflation, with the rates of increase edging above their historical averages in each case.
Pranjul Bhandari, Chief India Economist at HSBC, said: “India registered a services PMI of 58.8 in May 2025, broadly in line with the steady readings from recent months. Strong international demand continued to fuel services activity, as evidenced by the new export business index’s uptick from April.”
“To keep up with swelling demand, India’s service providers heavily increased staff recruitment. Indeed, the employment index rose to the highest reading ever recorded by this survey. Meanwhile, price pressures continued to intensify, with both input prices and prices charged rising last month,” Bhandari added.
