India’s services PMI growth accelerated to a five-month high in April 2026, supported by robust domestic demand, rising e-commerce activity, and improved business orders, even as export demand weakened amid ongoing geopolitical tensions in West Asia. According to the latest HSBC India Services PMI survey compiled by S&P Global, the Services PMI Business Activity Index rose to 58.8 in April from 57.5 in March, signalling the fastest pace of expansion since November 2025.

Key Highlights

• India's services PMI hits five-month high as domestic demand offsets weak export orders amid geopolitical uncertainties.
• Strong business activity, rising logistics demand, and hiring growth drive India’s services sector expansion in April.

The strong momentum was largely driven by increased domestic consumption, competitive pricing strategies, and growing demand for logistics and relocation services. However, international demand softened during the month due to the continuing West Asia conflict and weaker inbound tourism trends, impacting export orders for Indian service providers.

Commenting on the development, Pranjul Bhandari said, “India's services PMI climbed to a five-month high of 58.8 in April. Activity and new orders strengthened, even as new export orders eased, suggesting that demand is rotating from overseas markets to domestic consumers amid the Middle East conflict.”

Also Read: India's Manufacturing PMI at 54.7 in April, Slowest Growth in 4 Yrs

Cost Pressure

The survey also highlighted elevated input cost pressures, although inflation in operating expenses moderated slightly compared to previous months. Businesses reported rising prices for food items, labour, gas, and logistics, while some firms chose to absorb part of the higher costs instead of passing them fully to consumers. This resulted in output price inflation easing to a three-month low.

Despite global uncertainties and rising costs, overall business sentiment remained positive, with service providers expressing optimism about growth prospects over the next year. Hiring activity also improved at the beginning of the new fiscal year, particularly for short-term and junior-level positions, as firms prepared for rising workloads.

The HSBC India Composite PMI Output Index, which combines manufacturing and services activity, also rose to 58.2 in April from 57.0 in March, indicating continued economic expansion across sectors, though at one of the slower paces seen in the last two-and-a-half years.