Blitz Bureau
NEW DELHI: India’s service sector maintained a strong performance in December, even as HSBC India Services PMI Business Activity Index eased to 58 from 59.8 in November, 2025, a report said on January 6. The index stayed well above the neutral level, as growth continued to be robust. A reading above 50 indicates economic expansion. The December figure was also well above the long-run reading of 55.
The report compiled by S&P Global said the rate of expansion in incoming new work and output eased compared to activity in the last 11 months as firms held back on hiring. New work and export orders rose at above‑trend rates with gains noted from Asia, North America, the Middle East and the UK.
Companies reported quicker increases in input costs and output charges versus the previous month, though inflation rates remained below long‑run averages. Growth in new orders and output were supported by competitive pricing, demand buoyancy and positive client interest. Firms, however, said that growth was constrained by a greater presence of alternative providers and cheaper services offered elsewhere.
“While India’s service sector continued to perform well in December, the retreat in several survey indicators as 2025 ended may suggest a moderation in growth heading into the new year,” said Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence.
