India’s Service Sector Growth: In July 2025, India’s service sector recorded a significant increase and this growth has reached the highest level in the last 11 months. Seasternly adjusted HSBC India Service PMI (Purchasing Manners Index) was 60.5 in July, which was 60.4 in June. This is the highest figure since August 2024. The level above 50 in the PMI index shows expansion in economic activities, while the level below 50 indicates contraction.
The major reasons for this growth include a rapid jump in new export orders and strengthening of overall sales. According to the survey, Indian service providers have received new orders from countries like Asia, Canada, Europe, United Arab Emirates and America, which has seen a strong reform in international demand.

Service sector boom

On the price front, raw materials and cost of finished products have been recorded rapidly compared to June. This increase in production price shows cost pressure and strong demand. According to HSBC Chief Economist Pranjul Bhandari, this strength of the service sector is mainly due to an increase in export orders. However, he also indicated that the rise in prices is possible in further changes, as indicated by data from recent consumer price index (CPI) and wholesale price index (WPI).

Retail inflation was 2.1 percent in June, which remained below 4 percent from February, while wholesale price inflation remained negative after 19 months interval and decreased by 0.13 percent in June. Meanwhile, the HSBC India Composite Output Index also rose slight to 61.1 in July, which was 61.0 in June. This index is a combination of manufacturing and service PMI. Service PMI has been prepared by S&P Global based on the answers of about 400 service sector companies ..

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India’s manufacturing PMI: Despite global uncertainties, there has been a significant increase in India’s manufacturing sector in July. The PMI index remained over 58 for the second consecutive month. The figure was 58.4 in June, which increased to 59.1 in July- this is the highest level of the last 16 months.
Manufacturing sector boom

Seasonally adjusted HSBC India Manufacturing Purchase Manager Index (PMI) increased from 58.4 of June to 59.1 in July. This is a sign of the strongest improvement in the region since March 2024. The PMI extending above 50 of the index indicates expansion in production activities, while the figure below 50 indicates contractions.

Key points in HSBC report

HSBC Chief Indian Economist Pranjul Bhandari said that the manufacturing sector growth in July was at 59.1, which is more than 58.4 in June. This increase became possible due to new orders and strong increase in production.

Sale and production at record level

According to the survey, the total sales increased at the fastest speed in about 5 years. As a result, manufacturing growth reached a 15 -month high. The survey also stated that Indian manufacturers are convinced about the increase in production in the next 12 months. However, the overall positive spirit has come to its low level in the last three years.

Pressure on cost and prices

According to the survey, the cost of raw materials increased rapidly in July. The prices of items such as aluminum, leather, rubber and steel increased, causing the cost pressure to increase. Due to the high demand situation, companies have also increased the prices of their products. The SBC India Manufacturing PMI is prepared by S&P Global based on the answers to the questions sent between about 400 manufacturing companies.

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