Archive · 5 Aug 2026

India's Services Sector Growth Slows to Four-and-a-Half-Year Low in July

India's Services Sector Growth Slows to Four-and-a-Half-Year Low in July

India's services sector includes banks, shops, hotels, travel companies, and many other businesses people use every day.

A special scorecard called the PMI shows whether these companies are growing or shrinking compared with last month.

In July, the score was 53.3, still a sign of growth, but the slowest growth in about four and a half years.

Companies got fewer new orders than before because customers were spending less and competition was tough.

Some customers also postponed their plans.

The good news is that orders from other countries, especially the UAE, the UK, and the US, kept growing.

Companies also hired a few more workers, although most kept their teams the same.

They paid a little more for fuel, materials, and workers, and raised their prices a bit.

Business owners still feel hopeful about the future, but their confidence has fallen to a seven-month low.

Sources