New Delhi, November 4, 2026: India’s services sector recorded its fastest expansion in four months in October, supported by improved domestic demand and stronger new business, according to a business survey reported by Reuters on Wednesday.
The latest reading points to continued resilience in the domestic economy even as international orders weakened. The survey also indicated that hiring remained subdued, suggesting that stronger business activity has not yet translated into a comparable increase in employment.
Domestic demand supports new business
Improved demand within India helped service providers secure more new business during October. Services activity is an important part of the economy, covering areas such as information technology, finance, transport, tourism, communications and professional services.
Stronger domestic orders can support companies’ revenue and capacity utilisation. However, the softer trend in overseas orders indicates that external demand remains a challenge for some businesses exposed to international markets.
Hiring remains a point to watch
Despite the improvement in activity, employment growth was described as subdued. This difference between business expansion and hiring will be important to monitor in subsequent surveys, particularly for workers and policymakers tracking job creation.
What the survey signals for the economy
The four-month high suggests that domestic consumption and business demand provided support to services companies at the start of the October–December quarter. A single survey, however, is not a complete measure of economic output and should be read alongside official data on industrial production, inflation, employment and national accounts.
Image is representative and does not depict a specific company or survey respondent.
