Hiring of staff in India’s services sector at all-time high in May

The seasonally adjusted HSBC India Services PM Business Activity Index registered 58.8 in May, broadly in line with April's reading of 58.7

New Delhi: Driven by a strong demand for exports, India’s services sector activity kept up its high pace of growth in May. According to the latest HSBC survey, It also saw hiring of staff by firms surge to an all-time high during the month.

Registering 58.8 in May, the seasonally adjusted HSBC India Services PM Business Activity Index which is based on a single question asking how the level of business activity compares with the situation the month before, was broadly in line with April’s reading of 58.7 (PMI) and therefore signalled another sharp rate of expansion. Growth was reportedly underpinned by healthy demand conditions, new client wins and greater staffing capacity, the survey states.

---

Notably, companies observed a near-record improvement in international demand for their services during May. Over the course of the survey’s 19-and-a-half-year history, faster increases in new export orders were only recorded in May and June 2024. When citing sources of growth, firms mentioned Asia, Europe and North America in particular, the survey said.

New orders rose at a sharp pace that was largely aligned with those registered from February to April, similar to the trend for output. The survey added service providers continued to recruit additional staff to accommodate for ongoing expansions in new business intakes.

With rates of increase edging above their historical averages in each case, price gauges showed an intensification of input cost and output charge inflation.

Pranjul Bhandari, Chief India Economist at HSBC, said: “India registered a 58.8 services PMI in May 2025, broadly in line with the steady readings from recent months. Strong international demand continued to fuel services activity, as evidenced by the new export business index’s uptick from April.”

“To keep up with swelling demand, India’s service providers heavily increased staff recruitment. Indeed, the employment index rose to the highest reading ever recorded by this survey. Meanwhile, price pressures continued to intensify with input prices and charged prices both rising last month,” Bhandari added.