FX.co ★ India's Service Sector Growth Losses Some Momentum as PMI Edges Down in July

In a recent update from S&P Global, India’s services sector showed a slight cool down in its growth pace for July 2025. The Services Purchasing Managers' Index (PMI) dropped to 59.8 from a peak of 60.4 measured in June. This latest reading marks a slight deceleration, yet it remains robust, hovering well above the critical 50.0 mark that separates expansion from contraction.

July’s performance suggests that while the Indian service sector has maintained its expansion, the rapid growth seen in the previous months has eased somewhat. Analysts believe this resistance to significantly slower growth illustrates underlying strengths in the Indian economy, propelled by strong domestic demand and consistent delivery of key services.

The revised figures, updated as of 24 July 2025, continue to bolster confidence in India’s near-term economic outlook. Despite the moderated pace, India’s services sector is expected to sustain its growth trajectory, fostering optimism about potential economic contributions moving forward.