India's services sector growth hits four-and-a-half-year low in July on weak demand: PMI
India's services sector growth slowed to a 53-month low in July due to weak demand and increased competition. While the sector continues to expand, the pace of new business inflows has moderated significantly.
Why it matters
The slowdown in the services sector, a major driver of the Indian economy, signals potential cooling in domestic and export markets.
India's services sector growth fell to a four-and-a-half-year low in July as new business orders eased in both domestic and export markets, constrained by fierce competition and fading demand, a monthly survey said on Wednesday (August 5, 2026).
Business activity rose at the weakest rate in 53 months, as new business inflows increased moderately amid reports of softer demand and competitive pressures.
The seasonally adjusted HSBC India Services PMI Business Activity Index fell from 57.4 in June to 53.3 in July, registering the weakest growth rate in close to four-and-a-half years.
The seasonally adjusted HSBC India Services PMI Business Activity Index – based on a single question asking how the level of business activity compares with the situation the month before – remained above the neutral mark of 50 and therefore signalled another expansion in output.
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