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India Macroeconomic Indices

1 Finance Macroeconomic Index

Index providing insights into India’s economic phases and growth outlook. The 1 Finance Macroeconomic Index determines the growth of the economy.

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Subindices

Comprehensive real-time indices tracking India’s economic trends and performance.

Services Sector Activity Index

Services Sector Activity Index

Tracks India’s services sector growth and employment trends.

Industrial Sector Performance Index

Industrial Sector Performance Index

Output and performance of industries involved in manufacturing, production, and related activities.

Agriculture Output Index

Agriculture Output Index

Monitors India’s agricultural production and growth.

Consumer Inflation Index

Consumer Inflation Index

Tracks and provides a timely insight into India’s CPI trends.

Equity Market Optimism Index

Equity Market Optimism Index

Gauge Indian equity market sentiments and investor confidence.

Global Economic Impact Index

Global Economic Impact Index

Assesses the impact of global influences on India.

Financial Sector Soundness Index

Financial Sector Soundness Index

Evaluates banking stability and financial health.

Interest Rate Outlook Index

Interest Rate Outlook Index

Monitors repo rate trends to understand economic phases and monetary policy stance.

Economic Indicators

Economic Indicators

A comprehensive snapshot of India’s key economic indicators, including sectoral performance, inflation, interest rates, equity market optimism, financial sector soundness and global impact metrics. This section offers contextual insights into the country’s economic health and trajectory, helping inform data-driven investment decisions.

India's Economic Dashboard

An overview of India's Economy

India's Economic Calendar

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High-Frequency Economic Indicators

An extensive collection of high-frequency economic indicators

Services Sector ActivityIndustrial Sector PerformanceAgriculture OutputConsumer InflationEquity Market OptimismFinancial Sector SoundnessGlobal Economic ImpactInterest Rate OutlookOther HFIsKey Economic Indicators
Global Market P/E
Reports and Resources
Asset Allocator
1 Finance Macroeconomic Index

Subindices

Services Sector Activity IndexIndustrial Sector Performance IndexAgriculture Output IndexConsumer Inflation IndexEquity Market Optimism IndexGlobal Economic Impact IndexFinancial Sector Soundness IndexInterest Rate Outlook Index

Economic Indicators

India’s Economic DashboardEconomic CalendarNEWHigh-Frequency Economic Indicators
Global Market P/E

Reports and Resources

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Asset Allocator
Subindices

Services Sector Activity Index

Services Sector Activity Index

Services Sector Activity Index

Current Phase

Strong Recovery

Index Value: 57.87

77% Success rate

Summary

A strong recovery signifies a phase where the services sector performs better than the previous quarters, which is marked by increasing confidence among consumers and businesses, and high trade and investment.

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Index Value (LHS)

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Current Phase

Strong Recovery

Index Value: 57.87

77% Success rate

Summary

A strong recovery signifies a phase where the services sector performs better than the previous quarters, which is marked by increasing confidence among consumers and businesses, and high trade and investment.

Services Sector Activity Index

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Showing: Index Value • Range: 10 Years

Index Value (LHS)

Last Updated: 31 Jul, 2026
Source:CMIE Economic Outlook, 1 Finance Research
Source: CMIE Economic Outlook, 1 Finance Research
Last Updated: 31 Jul, 2026
Source:CMIE Economic Outlook, 1 Finance Research
Source: CMIE Economic Outlook, 1 Finance Research

Overview

Recent Updates

  • Services PMI fell sharply to 53.3 in July (from 57.4 in June), the weakest expansion since February 2022, as new business growth slowed in both domestic and export markets amid intensifying competition and fewer client enquiries.
  • Composite PMI (manufacturing + services) eased to 54.3 in July from 57.1 in June, the lowest expansion pace since March 2022; new export business for services remained a bright spot, supported by demand from the UAE, UK, and US, even as domestic demand cooled.
  • Input cost pressures in services accelerated sharply in July, driven by higher fuel, labour, materials, and transportation costs. Firms passed on part of this burden through a three-month high in output price inflation, helping cushion margins even as demand growth slowed.
  • India-UK CETA entered into force on 15 July 2026, granting duty-free access for 99% of Indian exports to the UK, with sectors like textiles, leather, marine products, gems and jewellery, and engineering goods seeing the sharpest tariff relief.

Near-term Outlook

  • The index continues to signal expansion, but momentum has cooled further and more sharply than in June, with the PMI slipping to a 53-month low in July rather than stabilising as hoped.
  • Export resilience remains a structural bright spot, cushioning the impact of softer domestic demand; the newly operational India-UK CETA could add an incremental tailwind to services trade over the coming months, though this will likely take time to materially show up in the data.
  • Input cost pressures, echoing concerns flagged last month, could weigh further on margins and sentiment if they persist, keeping the balance between cost pass-through and demand softness the key swing factor to watch.

Description

What is the Services Sector Activity Index?

Services Sector Activity Index is crafted using various high frequency economic indicators which captures the demand and supply side fluctuations, seasonal variations, impact of domestic policy measures, tax reforms, employment situations and global developments, to provide a timely insight into the performance of the services sector in India. Services sector is a crucial indicator for policymakers to formulate effective economic and trade policies; and also, to track the demand sentiments in the economy.

What are its components?

The index covers diverse economic parameters covering both demand and supply side factors. We have assigned appropriate weights to each of these indicators, which reflect the impact of these factors on the services sector activities.

The High Frequency Indicators (HFIs) include:

Baltic Dry Index

Bank Credit - Services

Consumer Price Index (CPI) Inflation - Miscellaneous

Domestic Air Passenger Traffic

Domestic Passenger Car Sales

EPFO Additions

GST Collections

Government Capital Expenditure

Usability

How to use Services Sector Activity index for better financial decision-making?

Insights from the services sector, a major component of India’s GDP, offer a strategy that is both informed and responsive to the dynamic nature of the Indian economy, especially within the vital services sector. These insights ensure that financial planning is robust, adaptive, and ready to seize emerging opportunities.

Insights

Performance Analysis of Services Sub-sectors: Identifying trends in sub-sectors such as hospitality, IT, or financial services is key in forecasting market conditions, indicating potentially favourable times to invest in these areas.

Demand Forecasting in Services: Indicators such as domestic air traffic and rail freight traffic shed light on mobility on demand within the services sector, aiding in the adjustment of spending and savings strategies, particularly during economic downturns.

Job Market Stability in Services Sector: Observing trends in the services sector provides a predictive view of employment stability, crucial for planning financial security and emergency savings for those employed in the sector.

Policy Changes and Tax Reforms Impact: Monitoring shifts in policy and tax reforms related to the services sector is essential. Understanding these changes helps in strategically adjusting investment plans to either mitigate risks or leverage new opportunities that arise from these economic policy shifts.

Historical Events

Apr

2025

Rise of Protectionism around the World: US and EU Elections

The EU and the US are India’s largest trading partners and a key source of FDI and Exports. Donald Trump’s victory in the 2024 elections and his subsequent announcement of reciprocal tariffs on trading partners reignited the concerns around protectionist policies as a means. European Parliament (EP) is the EU’s directly elected legislative body, with 720 members (MEPs) representing 27 member states. Elections occur every five years.

Feb

2022

Russia-Ukraine War

The Russia-Ukraine War, with Russia’s military intervention in Ukraine on February 24, 2022, was a major geopolitical conflict that has caused widespread international concern and economic repercussions. It marks a severe intensification of the long-standing tensions between Russia and Ukraine.

Mar

2020

COVID-19 Pandemic and Lockdown

The COVID-19 pandemic, a global health crisis caused by the novel coronavirus, began affecting India significantly from March 2020. Characterised by widespread infections, lockdowns, and public health emergencies, the pandemic has had profound implications on the Indian economy and society. According to the Ministry of Health and Family Welfare (MoHFW), COVID-19 caused 5,33,318 deaths as of December 19, 2023.

Jul

2017

Implementation of GST

On July 1, 2017, India underwent a major tax reform with the implementation of the Goods and Services Tax (GST), marking a significant milestone in the country's taxation history. GST was introduced as a comprehensive indirect tax on the manufacture, sale, and consumption of goods and services throughout India, replacing multiple cascading taxes levied by the central and state governments.

Nov

2016

Demonetisation

Demonetisation, announced on November 8, 2016, was a significant decision by the Indian government to withdraw the legal tender character of the Specified Bank Notes (SBNs), involving the high-value currency notes (₹ 500 and ₹ 1,000) from circulation. It represented a drastic step by the government in its fight to curb black money, counterfeit currency and corruption.