India’s services sector growth touched a six-month high of 59.8 in May, boosted by healthy demand conditions, new client wins, and ongoing improvements in new business intakes, a monthly survey said on Wednesday (June 3, 2026).

The seasonally adjusted Hong Kong and Shanghai Banking Corporation (HSBC) India Services Purchasing Managers’ Index (PMI) Business Activity Index rose to 59.8 in May, from 58.8 in April, signalling the strongest rate of expansion since last November. The HSBC India Services PMI Business Activity Index is based on a single question asking how the level of business activity compares with the situation the month before.

In the PMI parlance, a print above 50 means expansion, while a score below 50 denotes contraction. “India’s services PMI signalled an expansion in business activity in May, supported by a continued rise in new business. External demand for India-provided services also grew at a faster pace, rebounding after a sharp decline in April. Input cost inflation eased, which in turn reduced pressure on selling prices,” said Pranjul Bhandari, Chief India Economist at HSBC.

Strengthening demand for services such as freight, digital solutions, e-commerce, entertainment and IT reportedly boosted new business growth during May. As a result, companies lifted activity to a greater extent and continued to add to payroll numbers.

However, growth of external demand remained below the 2025 average, the survey said, adding that the expansion in international orders was nevertheless solid, with firms citing gains from Australia, Canada, France, Germany, Hong Kong, Malaysia, the UAE and the U.K.

On the prices front, input prices across the service economy continued to increase at an above-trend pace during May. Survey participants reported having paid more for food, fuel, gas, labour and materials compared to April.

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In terms of jobs, Indian services companies signalled a further increase in payroll numbers. The overall rate of job creation was solid and the second-fastest in just under a year (behind April), but fewer than 7% of panellists signalled greater hiring, and the vast majority indicated no change in headcounts.

Regarding the 12-month outlook for business activity, services firms expect demand conditions to remain favourable and therefore support output. The overall level of confidence slipped to a three-month low and was below the historical trend. Meanwhile, the HSBC India Composite PMI Output Index continued to recover from March’s slowdown, rising from 58.2 in April to 59.3 in May. Composite PMI indices are weighted averages of comparable manufacturing and services PMI indices.

New orders placed with private sector companies rose at the quickest pace in six months, and the aggregate selling prices rose at the weakest rate since January. The HSBC India Services PMI is compiled by Standard & Poor’s (S&P) Global from responses to questionnaires sent to a panel of around 400 service sector companies.

India’s services sector growth witnessed the slowest pace of expansion in five months in October, as competitive pressures and heavy rains in parts of the country led to a slower increase in output, according to a monthly survey released on Thursday (November 6, 2025).

The seasonally adjusted HSBC India Services PMI Business Activity Index fell from 60.9 in September to 58.9 in October, indicating the slowest pace of expansion since May.

Notwithstanding the moderation, the October Services PMI index was comfortably above both the neutral mark of 50 and its long-run average of 54.3.

In the Purchasing Managers’ Index (PMI) parlance, a print above 50 means expansion, while a score below 50 denotes contraction.

“India’s services PMI softened to 58.9 in October, which represented the slowest pace of expansion since May. Competitive pressures and heavy rains were cited as contributors to the sequential slowdown,” Pranjul Bhandari, Chief India Economist at HSBC, said.

While factors like demand buoyancy and GST (Goods and Services Tax) relief reportedly led to an improvement in operating conditions, competition and heavy rains constrained growth, as per the HSBC India Services PMI, compiled by S&P Global from responses to questionnaires sent to a panel of around 400 service sector companies, said.

The international demand for Indian services improved further, as signalled by another increase in external sales. The rate of expansion was solid, though the weakest since March, as per the survey.

Meanwhile, monitored firms suggested that the GST reform curbed price pressures. Input costs and output charges rose at the slowest rates in 14 and seven months, respectively.

Going forward, companies were strongly confident of a rise in business activity over the next 12 months.

Amid reports of efforts to support rising new-business intake, meet delivery deadlines, and maintain reliable services, companies recruited additional staff in October.

Meanwhile, the combined output of India’s manufacturing and service sectors continued to expand sharply in October, but growth lost momentum. Falling from 61 in September to 60.4, the HSBC India Composite PMI Output Index indicated the softest increase since May.

“India’s composite PMI fell on a sequential basis from 61 in September to 60.4 last month, largely due to the slowdown in the services sector,” Mr. Bhandari said.

Composite PMI indices are weighted averages of comparable manufacturing and services PMI indices. Weights reflect the relative size of the manufacturing and service sectors according to official GDP data.