India Services Sector

India's services growth broadened in June, with 18 of 19 sub-sectors expanding and real estate leading at 24.7%, even as air transport remained in contraction

India's economy has undergone a major transformation over eight decades, moving from an agriculture-led model towards a more diverse, services-driven economy

From the correction in AI stocks and environmental clearance rules to ecommerce reform, exam paper leaks and a critique of technology, desire and patriarchy

As labour intensity converges across manufacturing and services, it's time to rethink the role of services in job creation

The proposed index will provide India's first official monthly measure of output across the services sector, complementing existing manufacturing indicators

New services production index, a shift on Chinese investment, farmer-led agricultural reform, city labour markets and life under siege in Iran feature in today's Best of BS Opinion.

Earlier attempts to construct a services production index were constrained by the absence of reliable monthly data

As the services sector drives more than half of India's GDP, the ISP aims to provide timely insights into its performance and growth trends

From services trade trends and POSH gaps in IT firms to rupee volatility, labour reforms, and Arctic geopolitics, here are the key insights from today's Business Standard Opinion page

January services PMI: New orders increased faster in January after slowing at the end of 2025

While Europe doesn't have a strong system for offering financial services, China needs a stronger domestic services industry to create jobs and help its economy move out of deflation

This piece explores the implications of one of these profiles - formal versus informal employment

India's services PMI rose to 60.5 in July, the highest in 11 months, led by strong international sales, new orders and demand from Asia, Europe and the US

Composite PMI Output Index rose to 61.1 in July from 61.0 in June, its fastest pace since April 2024; but hiring growth weakens

Services employment creation has been robust in FY25 amid concern over impact of artificial intelligence

Companies report 'faster expansion' in employment to meet increased demand

Despite AI agents and chatbots increasingly becoming a part and parcel of customer service, they have yet to significantly reduce customer service wait times, with a report revealing that Indian consumers spent over 15 billion hours last year waiting to lodge customer service complaints. The ServiceNow Customer Experience report analysed the widening gap between rising customer expectations and the reality of service delivery. It surveyed 5,000 Indian consumers and 204 Indian customer service agents. As many as 80 per cent of Indian consumers now rely on AI chatbots for essential services like checking complaint statuses and product recommendations. Yet, these same consumers collectively spend an astounding 15 billion hours on hold each year, according to the report. "While some headway has been made-- the average Indian spent 3.2 hours less time waiting for an issue to be resolved than the previous year--there is still a considerable gap between customer expectations and service ..

Salary increments are also projected to vary across industries with engineering design services and auto/vehicle manufacturing budgeting for the highest pay increases

Business confidence leads to 'hiring surge' as input costs rise to the 'greatest extent' in 15 months

For more than three years, the index has stayed above the 50-mark separating expansion from contraction