India’s services sector witnessed a significant surge in February, fueled by robust domestic and international demand, resulting in accelerated output growth and strong job creation, according to a monthly survey.
The HSBC India Services PMI Business Activity Index climbed to 59.0 in February from January’s 26-month low of 56.5, signaling a sharp expansion.
A score above 50 in the PMI index denotes growth, while below 50 indicates contraction.
“India’s services business activity index rose to 59.0 in February 2025, up considerably from January’s 26-month low. Global demand, which grew at its fastest pace in six months, was a key driver,” said Pranjul Bhandari, Chief India Economist at HSBC.
Improved demand from regions like Africa, Asia, Europe, and the Americas significantly boosted international orders. The growth prompted Indian service providers to intensify recruitment efforts, resulting in one of the fastest job creation rates since December 2005.
The HSBC India Composite Output Index, which combines services and manufacturing data, also rose to 58.8 from 57.7, reflecting substantial overall growth.
India’s economy remains on a steady recovery path, with GDP growth pegged at 6.5% for the fiscal year, maintaining its status as the fastest-growing major economy.
