Exports boost services sector growth in April

New Delhi: India’s services sector growth rose marginally in April 2025 compared with March, supported by increase in export orders, as per an industry survey report released by S&P Global on Tuesday.

India’s Purchasing Managers’ Index (PMI) for services rose to 58.7 in April from 58.5 recorded in the previous month. The growth in the sector was substantially higher than the long-run average of 54.2. A PMI print above 50 indicates growth in the sector while below 50 shows contraction.

Indian companies continued to benefit from improved international demand for their services, with Asia, Europe, the Middle East and the US particularly cited as sources of strength. Overall, new export orders during the month under review expanded at the fastest pace since July 2024, S&P Global said in its monthly survey report.

The overall expansion in output was fuelled by a significant rise in new business intakes. Finance and insurance sub-sector exhibited the highest growth rates for both output and new orders during the month under review.

“New export orders gained momentum after taking a breather in March, accelerating at its fastest pace since July 2024. Margins improved as cost pressures eased and prices charged rose at a faster pace,” said Pranjul Bhandari, Chief India Economist at HSBC.

Services firms increased their average selling prices during April, as they sought to transfer higher cost burdens to clients. The rate of charge inflation was solid, faster than in March and above its long-run average.

Although service providers expressed optimism regarding activity growth, they downgraded expectations. The overall level of business confidence was at its lowest in close to two years, and was dampened by competition concerns, showed the report based on a survey conducted among around 400 services companies.