India's Services Sector Expansion

India's services sector experienced its fastest growth in 11 months during July, driven by a significant increase in export orders and robust sales growth, as highlighted by the HSBC India Services PMI report.

Key Highlights: The Services Purchasing Managers' Index (PMI) slightly increased to 60.5 in July from 60.4 in June, marking the highest level since August 2024. A PMI reading above 50 indicates sector expansion.

Global Demand Fuels Growth

Service providers in India reported receiving new business from various regions including Asia, Canada, Europe, the UAE, and the US, contributing to the sector's output expansion.

Optimism Amid Challenges

Despite the positive growth, the sector faced challenges such as increased input and output prices and a slowdown in job creation, with employment growth hitting a 15-month low.

Looking Ahead

Firms remain optimistic about future output, citing improved efficiency, digital adoption, and technological upgrades as key drivers. The Reserve Bank of India's upcoming policy meeting outcome is eagerly awaited, with expectations of steady interest rates.