RBI Survey Reveals Optimism in Services and Infrastructure Sectors for 2025-26

The Reserve Bank of India (RBI) has published the results of its 46th round of the Services and Infrastructure Outlook Survey (SIOS) for the second quarter of 2025-26. The survey, gathering insights from 706 firms, sheds light on the current sentiment in the business environment of these sectors.

In the services sector, firms reported enhanced business conditions and turnover from July to September 2025. While input costs increased, the pressure from salaries and finance costs decreased, improving the outlook for selling prices and profit margins. The survey also recorded a positive trend in employment and finance access.

Looking towards the third quarter, services companies are optimistic, predicting growth in turnover and demand, along with increased employment. Despite expected rises in wage bills, finance costs, and input costs, firms believe selling prices will help cushion profit margins, sustaining optimism through the first quarter of 2026-27. Meanwhile, infrastructure firms noted higher input costs and expenses during Q2 but anticipate improved business conditions in the coming months. Their outlook remains positive for employment and demand until early 2026, although input cost pressures are expected to persist.

(With inputs from agencies.)