Summary:

India’s services sector achieved its strongest growth in six months in May 2026, driven by rising demand, higher business activity and a recovery in export orders. According to the latest HSBC India Services Purchasing Managers’ Index survey compiled by S&P Global, the Services Business Activity Index rose to 59.8 from 58.8 in April, marking the fastest expansion since November 2025. New business inflows grew at the quickest pace in six months, while the Composite Output Index increased to 59.3, indicating stronger private-sector activity. Export demand improved across several global markets, and employment growth remained robust. Although input costs increased, inflationary pressures eased, allowing slower price increases and supporting continued economic momentum.

Source: IBEF

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