India’s services sector continued its strong performance in September 2025, with the HSBC India Services Purchasing Managers’ Index (PMI) holding firm at 60.9, according to data released by S&P Global. While marginally lower than August’s figures, the PMI remains well above the neutral 50-mark, signaling robust expansion.
Future Outlook Remains Bright
Despite the slight moderation, business optimism strengthened. The Future Activity Index — which gauges expectations for the next 12 months — rose to its highest level since March, indicating growing confidence among services companies about upcoming demand and revenue potential.
Economists noted that no major indicators pointed to a slowdown in momentum. Instead, the stability in growth reflects resilient domestic demand, policy continuity, and the underlying strength of India’s service-driven economy.
Manufacturing Growth Slows, But Remains in Expansion Territory
India’s manufacturing sector also sustained its growth in September, albeit at a slower pace. The HSBC India Manufacturing PMI stood at 57.7, down from 59.3 in August — the weakest pace of expansion since May, though still comfortably in positive territory.
The report highlighted continued growth in output and employment, even as new orders and inventory accumulation moderated slightly. These trends suggest firms remain optimistic, but are pacing their inputs to match evolving market demand.
Resilient Economic Growth Across Sectors
August had seen a strong PMI reading in manufacturing, reaching a 17-year high, driven by advertising efforts and surging demand for capital and intermediate goods. While September showed a modest pullback, analysts agree that India’s overall economic momentum remains intact.
With services and manufacturing both in expansion, the Indian economy continues to benefit from stable consumption patterns, growing exports in select sectors, and government-backed production and employment initiatives.