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India’s services sector saw a moderation in activity in June, with the HSBC India Services Purchasing Managers’ Index (PMI) easing to 57.4, down from 59.8 previously. The latest reading, updated on 03 July 2026, still signals solid expansion but points to a slower pace of growth compared with the earlier period.
Despite the decline, the June 2026 PMI level remains comfortably above the 50-point threshold that separates expansion from contraction, indicating that services activity in India continues to grow, albeit less vigorously. The softening suggests that while demand and business conditions remain supportive, the sector is no longer accelerating at the rate seen in the previous reading.
Market participants and policymakers are likely to watch upcoming PMI releases closely to assess whether this moderation is a temporary pause or the start of a more sustained cooling in India’s services-driven growth momentum.