The HSBC India Services PMI Business Activity Index fell to 57.4 in June from 59.8 in May but remained well above the 50.0 no-change mark, signalling a historically strong expansion despite the weakest pace of growth in 17 months.

Growth in new business slowed to its weakest level in more than two-and-a-half years, with firms citing reduced client interest and difficult market conditions. However, demand from e-commerce, tourism and competitive pricing continued to support activity. Export orders rose at the fastest pace in three months, driven by stronger demand from markets including Australia, Canada, Germany, the UAE and the US.

Hiring was broadly unchanged as companies considered existing staffing levels sufficient, while outstanding business remained largely stable.

Business confidence weakened to a five-month low, although firms continued to expect growth over the coming year through new clients, marketing efforts and investments.

Input costs increased due to higher electricity, food, fuel and transport expenses, but cost inflation eased to a five-month low. Selling price inflation also softened to its weakest level since November 2025.

The HSBC India Composite PMI Output Index declined to 57.1 in June from 59.3 in May, marking the slowest pace of private sector growth since March while remaining firmly in expansion territory.

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