Survey participants identified several tailwinds to the year-ahead outlook

At 60.9 in September 2025, the seasonally adjusted HSBC India Services PMI Business Activity Index was well above the neutral mark of 50 to signal another substantial upturn in output. Falling from 62.9 in August, however, the data showed a loss of growth momentum, the HSBC India Services PMI, compiled by S&P Global, said on Monday.

“Business activity in India’s services sector eased in September from the recent-high August level. Most trackers moderated but nothing in the survey suggested there is a big loss in growth momentum in services. Instead, the Future Activity Index rose to its highest level since March, indicating strengthening optimism services companies about business prospects," said Pranjul Bhandari, Chief India Economist at HSBC.

Operating conditions across India’s service economy remained favourable in September, with healthy demand trends underpinning further growth of total new orders, exports, employment and business activity. In all four cases, however, rates of expansion eased since August.

Encouragingly, a softer increase in expenses helped curtail charge inflation. Moreover, confidence towards the year-ahead outlook for output strengthened.

Anecdotal evidence showed that demand buoyancy and new business gains, alongside tech investment and favourable public policies, supported the rise in output. Barriers to growth featured in panel member reports included competitive conditions and cost-control measures, the survey added.

Similarly, new order intakes rose at a sharp pace that was nevertheless softer than that registered in August. Underlying data showed that part of the slowdown reflected softer improvements in international demand for Indian services.

External sales still rose in September, but did so to the least extent since March.