Business

India’s Services Sector Grows at a Slower Pace, Employment Reaches All-Time High: Report

Published

8 months ago

June 5, 2025

India’s services sector saw continued growth in May 2025, although at a slightly slower pace. The Services PMI rose to 58.8 from April’s 58.7, as reported by HSBC in their latest India Services PMI release on Wednesday.

With a reading of 58.8 in May, the seasonally adjusted HSBC India Services PMI Business Activity Index indicated a robust rate of expansion, staying close to April’s figure of 58.7. This index is derived from a monthly survey of approximately 400 service companies, signaling expansion with readings above 50 and contraction below that threshold.

The report highlights the services sector’s sustained growth over the past three months, showcasing its resilience and ongoing economic momentum. Notably, the report revealed a significant increase in international demand, with respondents indicating one of the strongest surges in export orders in the nearly 20-year history of the PMI survey. The growth in new export business in May was only surpassed once before, in June 2024, driven by strong demand from major global markets such as Asia, Europe, and North America.

To support this ongoing rise in new business, service providers ramped up hiring significantly, achieving the highest rate of job creation recorded in the survey’s history. Approximately 16% of companies reported adding to their workforce, while only 1% indicated reductions, reflecting strong confidence in future demand. Concurrent trends, such as rising input costs, echoed patterns seen in the manufacturing sector during the same timeframe.

“In response to increasing demand, India’s service providers have substantially boosted recruitment efforts, with the employment index reaching unprecedented levels,” said Pranjul Bhandari, Chief Economist at HSBC. “At the same time, price pressures have escalated, with both input costs and prices charged rising last month,” she added.

The positive momentum in demand for Indian goods and services also led to record increases in employment across both sectors, contributing to the fastest aggregate employment growth ever recorded.

Business confidence is also recovering after a dip to a 23-month low in April. The report indicated that improved sentiment is driven by expectations of better staffing, an expanding client base, and marketing initiatives that are likely to bolster further growth in the coming year.

Business

Gold Prices Decline Slightly on January 16

Published

3 days ago

January 16, 2026

Namma Kudla

Gold prices witnessed a mild decline in the domestic bullion market on January 16, 2026. The price of 24-carat gold was recorded at ₹143,080 per 10 grams. This marked a fall of ₹360 compared to its previous closing price, indicating a soft trend in the precious metal market.

Similarly, the price of 22-carat gold also moved lower. It was trading at ₹131,157 per 10 grams during the day. The decline in gold prices reflects cautious sentiment among investors amid changing global economic signals.

Market experts said gold prices were affected by fluctuations in international markets and movements in the US dollar. Profit booking by investors at higher levels also contributed to the marginal drop in prices.

Despite the decline, demand for gold remains steady in the domestic market. Jewellers reported moderate buying interest, especially for 22-carat gold used in jewellery. Industry participants are now closely watching global inflation data, interest rate trends, and geopolitical developments.

Gold prices are expected to remain volatile in the coming days. Investors are advised to keep an eye on global cues and currency movements before making fresh investments.

Business

Silver Crashes ₹12,500 to ₹2.43 Lakh per kg; Gold Declines ₹900

Published

1 week ago

January 9, 2026

Namma Kudla

Silver prices fell sharply from record levels in the national capital on Thursday due to global profit-booking. The price of silver dropped by ₹12,500 to ₹2,43,500 per kilogram.

According to the All India Sarafa Association, the white metal had touched a record high of ₹2,56,000 per kilogram in the previous trading session on Wednesday. Silver had surged by ₹5,000 in that session amid strong global cues.

Gold prices also weakened on Thursday. The yellow metal declined by ₹900 per 10 grams in the local market. Traders attributed the fall to selling pressure after recent gains.

Market experts said that a rise in global prices earlier had encouraged investors to book profits. This selling pressure impacted both silver and gold prices in the domestic market.

They added that movements in international bullion prices and a stronger dollar also influenced the decline. Investors are now closely watching global economic signals for further direction in precious metal prices.

Business

India Should Boost Silver Processing, Diversify Imports

Published

2 weeks ago

January 7, 2026

Namma Kudla

India should strengthen its silver processing capabilities and diversify its import sources, according to the Global Trade Research Initiative (GTRI).GTRI said silver is not just a precious metal. It is also a critical input for industries and the clean energy transition.

The report highlighted the growing importance of silver in sectors such as electronics, solar energy, electric vehicles, and advanced manufacturing. GTRI said India should secure long-term mining supplies from overseas to ensure a stable flow of raw silver.

It also recommended boosting domestic refining capacity to reduce dependence on imported finished silver. The think tank stressed the need to expand silver recycling within the country to meet rising demand.

GTRI warned that heavy reliance on a few countries for processed silver could pose supply risks. It noted that China is currently the world’s dominant processor of silver. The report advised India to diversify its import sources to improve supply security and reduce vulnerability to global disruptions.

GTRI said these measures would support India’s industrial growth and energy transition goals.