India services activity hits fastest growth since November in World Economy News 04/06/2026 India’s services sector grew at its fastest pace in six months during May, according to data released today. The HSBC India Services PMI Business Activity Index rose to 59.8 from 58.8 in April, marking the strongest expansion since November 2025. Service providers reported increased demand for freight, digital solutions, e-commerce, entertainment and IT services drove the growth. New orders placed with Indian service companies rose at the fastest rate in six months, moving away from the slowdown recorded in March. New export business also increased, though at a slower pace than total sales and below the average seen during 2025. Companies reported gains from Australia, Canada, France, Germany, Hong Kong, Malaysia, the UAE and the UK. Input cost pressures eased to their lowest level in four months, though they remained above historical averages. Service providers reported paying more for food, fuel, gas, labor and materials compared to April. The slower increase in cost burdens allowed companies to moderate their price increases. Selling prices rose at the weakest rate since January, with only 5% of survey participants reporting fee hikes. Service companies continued to add workers during May, with employment growth marking the second-fastest pace in nearly a year, behind April. Fewer than 7% of companies reported higher hiring, while most indicated no change in headcount. The HSBC India Composite PMI Output Index, which combines manufacturing and services data, rose to 59.3 in May from 58.2 in April. Both manufacturing firms and service providers recorded faster growth in sales and output. Consumer services outperformed other sub-sectors, recording the strongest growth in new business and output. The category also registered the highest increases in both input costs and output charges among the four monitored sub-sectors. “India’s services PMI signalled an expansion in busine