India services activity rises to four-month high of 55.8 in October

India’s services activity rose to a four-month high of 55.8 in October, according to the HSBC India Services Purchasing Managers’ Index (PMI) released in the country on 4 November 2026. Domestic orders and new business for example continued to rise strongly, whereas orders from abroad, employment and business expectations decreased.

Domestic demand lifts the HSBC India Services PMI

HSBC India Services PMI increased to 55.8 in October from 55.2 in September, marking the fastest expansion in business activity since June, as per the HSBC India Services PMI.

The index was above the 50 plateau that constitutes expansion/contraction for the index. New business orders rose at the fastest rate for four months. Companies reported increased sales due to favorable demand, customer acquisition and effective marketing.

Finance and insurance led growth among the four broad services segments, the HSBC India Services PMI data showed. Real estate and business services recorded the slowest growth.

International orders and hiring lose momentum

International orders continued to rise, but their growth slowed to its weakest pace since February 2023, according to the HSBC India Services PMI data. The survey recorded the weakest employment expansion since June.

Pranjul Bhandari, Chief India Economist at HSBC, said the slowdown in international orders and hiring indicated some caution among businesses.

Business confidence fell from September and remained below its long-run average, according to the HSBC India Services PMI data. Service providers remained optimistic about output growth over the next 12 months.

Input-cost inflation reaches an August 2020 low

Services companies' input-cost inflation eased to its lowest level since August 2020, the HSBC India Services PMI data showed. Some companies reported higher expenditure on electricity, labour, raw materials and transportation.

Fewer than 3 percent of surveyed services companies raised their charges in October, while output-price inflation fell to its lowest level since June.

The HSBC India Composite PMI Output Index rose from 55.9 in September to 56.2 in October, marking its strongest expansion in four months. The composite measure covered manufacturing and services activity as manufacturing moderated, according to the HSBC India Composite PMI Output Index data.