India services sector witnessed a significant surge in growth during October 2025, marking its fastest expansion in four months, according to the latest Purchasing Managers’ Index (PMI) data released by S&P Global. The index climbed to 61.2, up from 60.2 in September, signaling a robust improvement in business activity, consumer confidence, and overall economic momentum.
Economists say this growth reflects the continued recovery of India’s post-pandemic economy and the positive impact of festive-season spending. The services industry — which includes sectors like IT, finance, telecommunications, hospitality, and retail — accounts for nearly 55% of India’s GDP, making its performance a crucial indicator of overall economic health.
The strong PMI reading shows that India’s service providers are experiencing solid demand both domestically and internationally, said Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence. New orders continue to rise sharply, driven by consumer confidence and greater business optimism.
The report also highlighted a notable increase in new export business, indicating rising demand for Indian services from global clients. This trend, analysts believe, is supported by India’s growing reputation in IT outsourcing, digital services, and financial solutions.
Meanwhile, the job creation rate within the service industry reached its highest level since mid-2023, as companies expanded their workforce to meet rising workloads. Employment growth was particularly strong in customer support, banking, and technology sectors.
Inflationary pressures, however, remain a concern. Input costs for service providers increased moderately due to higher energy and transportation expenses. Despite this, many firms avoided passing on the entire burden to consumers, helping sustain competitive pricing in the market.
Experts predict that the strong October performance will positively influence India’s third-quarter GDP figures, expected to be released later this year. The Reserve Bank of India (RBI) is likely to maintain its growth forecast while keeping a close eye on inflation trends.
As global investors continue to view India as one of the most promising emerging markets, the latest PMI data reinforces the country’s position as a leader in service-driven economic growth.
