India's service sector has witnessed a significant upswing as the S&P Global Services Purchasing Managers' Index (PMI) surged to 59.0 in February 2025, up from January's reading of 56.5. The latest data, updated as of March 5, 2025, underscores the sector's strong expansion, marking a period of growth and resilience in one of the world's most dynamic markets.
The PMI, which measures the health of the service sector, indicated notable acceleration in business activity across various service industries, driven by increased demand and robust new business growth. This upward trajectory highlights the expansionary phase, as a reading above the neutral 50.0 threshold signifies growth.
Such a marked improvement in the service sector points to increased consumer confidence and steady economic recovery, underpinning strength against a backdrop of global uncertainties. India's service sector plays a critical role in the country's economic landscape, thus making this growth both a positive sign for domestic markets as well as a confidence booster for international investors watching the region’s economic trajectory closely.