Indian services sector growth accelerates to 59.8 in November

Indian services sector growth accelerated in the month of November, after losing some momentum in October, boosted by a faster upturn in new business intakes. According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index surged to 59.8 in November from 58.9 in October.

However, the HSBC India Composite PMI Output Index -- which measures both manufacturing and services -- eased to 59.7 in November as against 60.4 in October.

In October, India’s services sector softened as heavy rains and intense competition slowed business activity, even as easing price pressures offered some respite to firms.

The report noted that demand for Indian services continued to strengthen, as shown by another expansion in new business intakes. The rate of increase was sharp, quicker than in October and above its long-run average. On the other hand, there was a softer increase in new export orders midway through the third fiscal quarter.

The rate of growth was solid, but eased to an eight-month low. Where external sales rose, firms reported gains from Asia, Europe and the Middle East.

Indian services companies signalled a marginal increase in their expenses, with outlays on electricity, food, rent and software subscription reportedly rising. The rate of inflation receded to the lowest since August 2020, however, and was below its long-run average.

As a result of receding cost pressures and efforts to secure new work, a smaller proportion of services companies increased their own fees in November. Having eased to its lowest in over four years, the overall rate of charge inflation was negligible.

On the other hand, India’s industrial production growth slowed sharply to 0.4% in October 2025, mainly due to fewer working days during a month packed with major festivals and a decline in electricity generation, according to official data released on Monday.