New Delhi, Nov. 4 -- India's services activity rose at its fastest pace in four months in October as strong domestic demand drove up new businesses and cost pressure eased to its lowest in six years, but growth in export orders and hiring slowed, a private survey showed on Wednesday.

HSBC's India Services Purchasing Managers' Index (PMI) inched up to 55.8 in October from 55.2 in the previous month. A reading ⁠above 50 indicates expansion.

New business, a proxy for demand, rose at its fastest pace since June on strengthening domestic demand. "Favourable demand conditions, new client wins and successful advertising boosted new order intakes, qualitative data showed," the survey said.

Importantly, input cost inflation retreated to i...