Mumbai, May 6 -- India's services sector saw a strong rebound in April 2026, with growth in both output and new orders accelerating, according to the latest PMI data. The HSBC India Services PMI Business Activity Index rose to 58.8 from 57.5 in March, marking the fastest expansion since November last year.

The improvement was driven by stronger domestic demand, increased e-commerce activity, and a shift from international to domestic suppliers amid the war in the Middle East, which particularly supported transport services. New business inflows grew at the quickest pace in five months, led by Consumer Services, followed by Transport and Information & Communication.

However, external demand weakened, with export growth slowing to a five-...