---
title: "India services growth picks up in April on strong domestic demand, PMI shows"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/285317640.md"
description: "India's services sector growth improved in April, rising to 58.8 from 57.5 in March, driven by strong domestic demand despite slowing global orders. The growth in new business reached a five-month high, particularly in consumer services. However, international sales growth slowed due to Middle East tensions and reduced tourism. Operating expenses increased but at a slower rate, with moderate selling price rises. Employment expanded significantly, marking the strongest growth in 10 months. The overall composite PMI index also rose to 58.2, indicating robust private sector activity."
datetime: "2026-05-06T05:09:20.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/285317640.md)
  - [en](https://longbridge.com/en/news/285317640.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/285317640.md)
---

# India services growth picks up in April on strong domestic demand, PMI shows

BENGALURU, May 6 (Reuters) - India's services sector growth picked up in April after falling to a 14-month low in ‌March, driven by strong demand at home that offset slowing ‌global orders, but optimism about the year ahead fell on Middle East uncertainties, ​a survey showed on Wednesday.

• The HSBC India Services Purchasing Managers' Index, compiled by S&P Global, rose to 58.8 in April from 57.5 in March, higher than a preliminary estimate of 57.9. The index has ‌been above the 50.0 ⁠mark separating growth from contraction since mid-2021.

• Growth in new business - a gauge of demand - accelerated to ⁠the strongest pace in five months in April. Consumer services led the expansion in new orders and output, followed by transport, information and ​communication.

• However, ​international sales growth weakened to the ​second-slowest pace in more than ‌a year. Companies linked the slowdown to the Middle East war and subdued inbound tourism.

• Operating expenses rose at a softer pace in April, easing from an almost four-year high in March, yet remained steep on higher costs for food, gas and labour.

• Firms ‌appear to have absorbed much of ​the additional cost burden as selling prices ​rose only moderately and ​at the slowest pace in three months.

• Rising volumes ‌of new business boosted recruitment ​of short-term staff ​and junior-level trainees, with employment expanding at the strongest pace in 10 months.

• The overall composite PMI index, which tracks both ​manufacturing and services, ‌rose to 58.2 in April from 57.0, signalling an historically ​strong rate of expansion in private sector activity.

(Reporting by ​Shaloo Shrivastava; Editing by Jacqueline Wong)

### Related Stocks

- [IND.US](https://longbridge.com/en/quote/IND.US.md)
- [1678.JP](https://longbridge.com/en/quote/1678.JP.md)
- [SPGI.US](https://longbridge.com/en/quote/SPGI.US.md)

## Related News & Research

- [India proposes interim cash settlement to boost liquidity in agri derivatives](https://longbridge.com/en/news/286101833.md)
- [Japan PMI Manufacturing: 54.5 (prev 55.1)](https://longbridge.com/en/news/287136135.md)
- [How Services Could Help Generate $13 in Earnings Per Share for Apple Stock](https://longbridge.com/en/news/286811291.md)
- [Japan's factory activity expands at slower pace, cost pressures surge](https://longbridge.com/en/news/287134571.md)
- [Australia flash PMI slumps to 47.8 in May as new orders fall at fastest pace since 2021](https://longbridge.com/en/news/287129252.md)