Services PMI Rises to 59 in February 2025
Why in the news
Services activity rebounded in February 2025 while tariffs and AI disruption loomed.
Key facts
| Indicator | Reading |
|---|---|
| Services PMI | 59 |
| Real GDP growth, Q3 FY25 (NSO) | 6.2% |
| IT growth forecast, FY25 | 5.1% (FY24: 3.8%) |
Concerns
- Protectionism could dent exports; America is India’s largest trading partner, so a U.S. recession would hurt.
- AI is reducing new-contract earnings in IT, far below its historical 16% CAGR.
- NASSCOM flags geopolitical instability and tariffs.
Way forward
- Diversify trade partners, adapt to AI, and strengthen domestic demand.
Exam angle
- PMI above 50 means expansion.