India’s Services Growth Slows To 11-Month Low In December On Weak Orders, Output
The HSBC India Services PMI Business Activity Index dropped from 59.8 in November to 58.0 in December.
Expansion in India’s services sector eased to an 11-month low in December 2025, weighed down by softer new work orders and output, according to a private survey.
The HSBC India Services PMI Business Activity Index dropped from 59.8 in November to 58.0 in December — its weakest reading since January 2025. The index tracks month-on-month changes in business activity.
“Although India’s service sector maintained a strong performance in December, several indicators retreated as 2025 drew to a close,” the report noted. Growth in new work and output slowed to the weakest pace in nearly a year, with firms holding back on hiring.
Business confidence also slipped to its lowest level in almost three-and-a-half years, though companies remained optimistic about long-term prospects. “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.
She added that benign inflation could support competitiveness: “If services firms continue to see only mild increases in expenses, they should be better positioned to limit price hikes, boost sales, and create jobs.”
The report highlighted that the hiring trend, which had been rising since June 2022, stalled in December, as firms faced little pressure on operating capacity.
"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," news agency Reuters quoted Pollyanna De Lima, economics associate director at S&P Global Market Intelligence.
