As price pressures eased due to strong demand, activity in India’s dominant services sector expanded at the fastest pace in 12 years this February.
The S&P Global India Services Purchasing Managers’ Index (INPMIS=ECI) rose from 57.2 in January to 59.4 in February, its highest since February 2011 and considerably above all forecasts in a Reuters poll which had predicted a fall to 56.2.
It was above the 50-mark separating growth from contraction for a 19th straight month, its longest stretch of expansion since June 2013.
“The service sector more than regained the growth momentum lost in January…as demand resilience and competitive pricing policies underpinned the joint-best upturn in sales over the same period,” noted Pollyanna De Lima, economics associate director at S&P Global.
Although new business surged at its quickest rate in eight months, firms only increased hiring marginally and business confidence was the lowest in seven months.
“It seems that hiring growth was also dampened by a lack of confidence in the business environment. The degree of optimism recorded in February was…below the historical trend as some companies doubted demand would remain this resilient,” De Lima added.
Last updated: December 26th, 2025
