India’s services sector demonstrated accelerated growth in October, underpinned by heightened demand, acquisition of new clients and enhanced business activity. The HSBC India Services PMI Business Activity Index advanced to 55.8 from 55.2 in September, registering the sharpest expansion in four months and maintaining a notable position above the 50.0 growth threshold.

New orders expanded at the most robust rate observed since June, with the Finance & Insurance sector spearheading growth within the service industries. Domestic demand continued to be the primary catalyst, whereas export growth decelerated to its weakest level since February 2023.

Business expansion decelerated to the slowest pace in four months, reflecting ongoing caution among firms regarding the economic trajectory. Nevertheless, input cost inflation moderated to its lowest level since August 2020, and service charges registered their smallest rise since June.

The HSBC India Composite PMI Output Index advanced to 56.2 in October from 55.9 in September. Input cost inflation retreated to an 11-month low, with output price inflation moderating to its weakest level since February 2022.