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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Tata speed up iphones production: Stress increased due to Trump’s tariff is now on the verge of almost ending between the US and China. After a long talks between the two countries in Geneva for the last two days, the business agreement has been agreed. A statement in this regard has also been issued by the White House. That is, the conflict between the two countries due to tariffs will now end.

On the other hand, Tata is working on a plan to increase iPhone production in India. The Economic Times quoted sources as saying that the production of iPhone being built in a new plot in Hosur, Tamil Nadu has started and its shipment will also start in May.

Increased production of iPhone

Due to the tariff, Apple has made a plan to shift the main manufacturing hub China to India. After a confrontation between Washington and Beijing, Apple has planned to shift his business to India. About 300 to 500 iPhone units can be produced in the plot. According to media reports, the iPhone 16 and 16E will be produced in it.

According to reports, the plant is expected to be fully operated by December 2027. When this plant will run with full capacity, then about 50 thousand new jobs are being estimated to produce. However, Tata has not made any kind of comment on this. On the other hand, the plant is also being prepared at a cost of $ 2.6 billion of FoxConn of Taifan and production will start soon in the coming days.

Apple shifting India

Significantly, the total global production of iPhone is currently made in China, while only 18 percent production is being done in India. Taking steps, Apple has decided to prepare all the iPhones sold in the US in Indian factories by the end of 2026.

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