The HSBC India Services Business Activity Index rose to 54.1 in August from 53.3 in July but remained below the 62.9 recorded in August 2025. A reading above 50 indicates expansion, while a figure below that signals contraction.
PMI at 54.1; growth pace among weakest since Mar ’22
“Growth was supported by stronger output and new business, although the overall pace was still among the weakest seen in over four years, with some firms citing subdued bookings, competition and reduced transport operations,” said Pranjul Bhandari, chief India economist at HSBC.
Manufacturing activity, meanwhile, weakened in August, with the Purchasing Managers’ Index (PMI) falling to a five-year low of 52.8 from 53.5 in July.
As a result, composite PMI, which combines manufacturing and services activity, remained unchanged at 54.3 in August. Stronger services activity offset the slowdown in manufacturing, leaving overall private sector growth unchanged during the month.
Business confidence about the year ahead was broadly unchanged from July and remained below its long-run average, the survey said. Service providers continued to expect improvements in market conditions and demand, with technology adoption and new enquiries also supporting optimism.