India's services PMI rose to 59.0 in February, driven by strong domestic and global demand, boosting output and employment
New Delhi: India’s services sector recorded a sharp surge in February, buoyed by robust domestic and international demand that accelerated output and propelled significant job growth, according to a private survey released Wednesday. The seasonally adjusted HSBC India Services PMI Business Activity index rose notably from January’s 26-month low of 56.5 to 59.0 in February, signalling a strong rate of expansion.
“In February 2025, the services business activity index rose to 59.0, significantly higher than January’s 26-month low of 56.5,” said Pranjul Bhandari, chief India economist at HSBC. She noted that global demand expanded at its fastest pace in six months, contributing to the sector’s output growth, as indicated by the new export business index.
The survey also highlighted a pronounced increase in employment, describing it as one of the fastest rates of job creation since data collection began in December 2005. “Job creation and charge inflation remained strong in February. Looking ahead, business sentiment remains broadly positive, although it did slip slightly to its lowest level since August 2024,” Bhandari added.
Productivity gains, solid underlying demand, and a higher influx of new business were cited as key drivers of growth. Service providers noted improved orders from clients across Africa, Asia, Europe, the Americas, and the Middle East, further supporting the positive outlook for the sector’s continued expansion.
