Indian service sector The growth remained strong in May. It got support from factors like better demand, new customers, etc. This information was given in a monthly report released on Wednesday. Seasternly adjusted HSBC India Service PMI Business Activities Index stood at 58.8 in May, which was 58.7 in April. This figure indicates another acute rate of expansion. In the language of the purchasing manager index (PMI), more than 50 marks mean expansion in activities and less than 50 refers to contraction. At HSBC, India’s Chief Economist Pranjul Bhandari said that India’s service PMI was 58.8 in May 2025, which is broadly stable as per the recent increase. Strong international demand continued to promote service activity, as is evident from the boom in the new export trade index since April.
Companies recruit fierce
According to the survey, there was a rapid increase in the new order, mainly due to advertising, demand strengthening and re -order received from existing customers. Bhandari said, to meet the increasing demand, India’s service providers have made a huge increase in the recruitment of employees. In fact, the Employment Index has reached the highest level recorded so far in this survey. About 16 percent of the members in the survey spoke of the increment, while one percent indicated a decline. It said, the overall rate of employment generation was the strongest in the history of survey.
Increased cost of companies
The cost of companies increased due to increase in the number of employees and ‘overtime’ payment. Some companies also cited more expenditure on cooking oils, materials and meat. Meanwhile, the ‘HSBC India Composite Output Index’ stood at 59.3 in May, which was 59.7 in April. The decline in the main index refers to the slow growth of factory production, while the service activity has increased at a rapid pace. Constant improvement in demand for Indian goods and services led to a record increase in the history of survey in both sectors. Therefore, the total employment increased at an unprecedented speed. HSBC India Seva PMI has been prepared by S&P Global on the basis of answers to questions sent to a group of about 400 service sector companies.
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