India's Services Sector Hits 15-Year Peak Amid Economic Resurgence
India's services sector achieves unprecedented growth with PMI hitting 62.9 in August, marking a 15-year high amid robust domestic and international demand, despite global economic challenges.
Indian business district showcasing the country's thriving services sector growth
India's services sector demonstrated remarkable strength in August, achieving its highest growth rate in 15 years. The HSBC India Services PMI Business Activity Index surged to 62.9 from July's 60.5, marking the most substantial expansion since June 2010.
Unprecedented Growth in New Orders
The surge in activity comes amid strengthening international trade relations, despite recent global tensions. The expansion was primarily driven by a sharp increase in new orders, with international sales reaching their third-highest level since tracking began in September 2014.
"India's services PMI Business Activity Index reached a fifteen-year high last month, from 60.5 in July to 62.9 in August, on the back of surging new orders," stated Pranjul Bhandari, Chief India Economist at HSBC.
International Market Performance
The robust performance mirrors patterns seen in other emerging markets, where economic indicators have shown remarkable resilience. Panel members reported increased demand from clients across Asia, Europe, the Middle East, and the United States.
Key Performance Indicators
- PMI Business Activity Index: 62.9 (August)
- Previous month's reading: 60.5 (July)
- Composite PMI Output Index: 63.2 (17-year high)
Price Trends and Future Outlook
The sector witnessed a nine-month high in inflation rates, while output charges saw their steepest increase since July 2012. This economic momentum has created favorable conditions for market stability and investment opportunities, despite global uncertainties.
Year-ahead expectations have improved to a joint five-month high, with companies expressing optimism about continued growth through strategic staff recruitment and expanded operational capacity.
Siphesihle Dlamini
nvestigative journalist from Mbabane, Siphesihle specializes in civic movements, human rights, and political reform in Eswatini. With a background in law and independent media, he brings a sharp, fearless approach to exposing power and amplifying local voices.