India Services PMI Surges to 59.8 in November on Historically Sharp Expansion

India’s services sector saw a significant growth in November 2025, with the HSBC India Services Purchasing Managers’ Index (PMI) increased to 59.8, rising from 58.9 in October, according to the latest S&P Global survey released on Wednesday. The reading signals a robust upturn in business activity, well above the neutral 50 mark that separates growth from contraction, and marks the fastest expansion in output seen in recent months.

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Accelerated Output Growth

The surge in the services PMI was driven by a strong increase in new business intakes, which fueled faster output growth across the sector. Demand for Indian services continued to strengthen, with the rate of new business expansion quicker than in October and above its long-run average. Underlying data indicated that positive demand trends were supported by a general absence of price pressures, helping firms maintain competitiveness and stimulate further growth.

International Sales and Employment

International sales also improved, with firms reporting gains from markets in Asia, Europe, and the Middle East. However, the growth in external sales slowed to an eight-month low. This was due to tough international competition and the presence of cheaper services in other regions. Employment growth remained modest, with most companies reporting little change in payroll numbers, and the rate of job creation in the services sector was broadly similar to previous months.

Composite and Manufacturing PMI

India’s composite PMI, which combines services and manufacturing, was 59.7 in November. This shows a slight slowdown in factory production compared to October. The manufacturing PMI dropped to 56.6 in November, down from 59.2 in October. This indicates the weakest improvement in operating conditions in nine months. Despite this, both sectors continued to show above-trend growth in output and new orders.

Outlook and Sentiment

Survey respondents noted that firms still expect output growth in the coming months. Positive sentiment is linked to strong demand, increased social media presence, and marketing efforts. Companies also mentioned plans to limit price increases, which should help maintain demand and growth momentum in the sector.