India’s services sector surged to its fastest growth in 10 months during May 2025, driven by strong demand and a spike in new business, according to the HSBC India Services Purchasing Managers’ Index (PMI), compiled by S&P Global. The index rose to 61.4, up from 60.8 in April signaling robust expansion, as any figure above 50 indicates growth.

This marks the 34th consecutive month of sectoral expansion, showing sustained post-pandemic recovery and business confidence. New export orders also increased for the 23rd straight month, highlighting India’s growing global services footprint.

Despite this rapid growth, the report indicated that input costs rose at the fastest pace in a year, mainly due to transportation and labor expenses. However, output inflation remained modest, showing that companies are absorbing costs instead of transferring them entirely to consumers.

This data reflects growing optimism in India's economy, supported by steady job creation and resilient demand both domestically and globally.