Tue May 06 07:46:58 UTC 2025: **Indian Service Sector Shows Strong Growth Driven by US Demand**
NEW DELHI – India’s service sector experienced robust growth in April, fueled by a surge in new orders, particularly from the United States, according to a new survey. The HSBC India Services PMI Business Activity Index rose to 58.7 in April, up from 58.5 in March and exceeding India’s long-term average. This growth was driven by a significant increase in new business, described as the joint-best in eight months, with companies citing strong demand and successful marketing. Increased efficiency also allowed some firms to take on more work.
The report highlights strong demand from the US, alongside Asia, Europe, and the Middle East. Export orders also saw significant acceleration, reaching their fastest pace since July 2024. Improved margins resulted from easing cost pressures and faster price increases. This positive trend in the service sector follows a similar surge in India’s manufacturing sector in April, which also experienced strong growth in foreign orders.
While service sector firms remain optimistic about future growth, HSBC’s Chief India Economist, Pranjul Bhandari, noted a slight decrease in confidence. The overall positive results paint a picture of a thriving Indian service sector, bolstered by international demand, particularly from the United States.
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