The Reserve Bank of India (RBI) has released the results of its 46th Services and Infrastructure Outlook Survey (SIOS) for the second quarter of the financial year 2025-26. The survey aims to gauge the mood and outlook of companies operating in the services and infrastructure sectors, which are vital to India’s economy. Despite ongoing cost pressures, companies in both sectors remain cautiously optimistic about the business environment, anticipating steady demand growth in the near term.
The survey covers key sectors such as IT, hospitality, retail, and transport in the services sector, and construction, power, telecom, and other critical facilities in the infrastructure sector. While rising input costs and inflationary challenges are putting pressure on profit margins, firms are confident that they can manage these challenges without hindering overall growth prospects.
The survey reveals that a majority of firms expect moderate to strong demand in the coming months, which is expected to support increased output and potential hiring. Both sectors have shown positive signs of investment activity plans, indicating confidence in long-term growth and expansion despite short-term challenges.
The optimistic outlook of services and infrastructure firms is a positive indicator for the broader economic recovery and stability in India, given that these sectors are key drivers of the country’s GDP and employment. While cost pressures remain a concern, the resilience and positive expectations among firms in these sectors highlight a promising path forward.
The survey’s findings suggest that India’s economy is poised for growth, driven by the services and infrastructure sectors. The RBI’s survey provides valuable insights into the mood and outlook of companies operating in these sectors, which can inform policy decisions and investment strategies. Overall, the survey’s results are a positive sign for India’s economic prospects, and businesses and investors can take note of the opportunities and challenges that lie ahead.