Indian Services Industry Continues Strong Expansion

India’s Services PMI hit a new all-time high in August of 2025, climbing to 65.6 points according to preliminary data. On the index where a result above 50 signals an expansion of the sector, services have seen some of the highest readings of the past 20 years during the pandemic and post-pandemic economy as digital services – a strong point of the Indian services industry – boomed.

After an initial crash in early 2020, the Indian services industry suffered another contraction during the country’s devastating Delta wave in mid-2021. The Omicron winter of 2021/22 did slow growth but didn’t break the streak of now 48 straight months of expansion since August of 2021.

Sectors that showed a good performance on the index were the finance and insurance industries, while real estate and business services grew slower, according to S&P Global.

While India’s trade deficit has been widening post-pandemic as global crises and economic slowdowns cratered demand for goods, the country’s services exports, for example through the prolific outsourcing industry, have propped up the nation’s trade balance.