India's services sector PMI rose to 60.1 in April 2026, up from 58.8 in March, maintaining strong expansion territory and indicating that the momentum in the country's dominant services economy remained intact through the first month of FY27. The April reading was the second-highest on record and significantly above the global services PMI average of 52.4, highlighting India's exceptional services sector performance.
New business intake rose sharply to 62.4, its highest since 2014, as financial services companies reported a surge in insurance and investment product sales, IT firms reported higher deal conversions and the hospitality and tourism industry benefited from a strong summer travel season. Export services also performed strongly, with the external demand component of the PMI rising to 58.1 on higher global demand for Indian IT and knowledge process outsourcing services.
Employment in the services sector expanded for the 14th consecutive month, with the employment sub-index at 57.8. Input cost pressures in services remained moderate with wages being the primary cost driver. The robust services PMI data supports the view that India's composite PMI, which combines manufacturing and services, will remain in strong expansion territory through Q1 FY27, providing confidence in the government's 7%+ GDP growth target for the full year.
