Indian Economy News

India Services Activity Hits Five-Month High in April on Strong Domestic Demand: HSBC PMI

India’s services sector activity expanded at its fastest pace in five months in April 2026, supported by robust domestic demand, rising new business inflows and strong logistics activity. According to the HSBC India Services Purchasing Managers’ Index (PMI), the seasonally adjusted Business Activity Index rose to 58.8 in April from 57.5 in March, indicating the strongest expansion since November 2025. A PMI reading above 50 signals expansion in business activity. The survey highlighted that competitive pricing, strong consumer demand and higher demand for relocation and logistics services contributed significantly to growth during the month. New orders also increased at a faster pace, reflecting improving domestic market conditions and resilient consumption trends across the country.

Despite strong domestic momentum, export demand moderated amid geopolitical uncertainties linked to the Middle East conflict and rising supply-chain concerns. HSBC Chief India Economist Pranjul Bhandari stated that activity and new orders strengthened even as overseas demand softened, suggesting a shift in demand towards domestic consumers. Companies also increased hiring activity, particularly among junior staff and short-term workers, to manage rising workloads and expanding business requirements. Input cost pressures, however, remained elevated due to higher transportation, fuel and labour costs. The sustained improvement in services activity reflects the resilience of India’s domestic economy and continued strength in sectors such as transport, finance, consumer services and e-commerce at the beginning of FY27.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.