new delhi, May 7 -- India's services sector rebounded in April after a March slowdown, driven by increases in new business and output, a private survey showed on Tuesday. The seasonally adjusted HSBC India Services Purchasing Managers' Index (PMI) rose to 58.7 in April from 58.5 in March, staying well above the 50-mark that signals expansion, though still below February's 59. The index stood at 56.5 in January, 59.3 in December, 58.4 in November, 58.5 in October, and 57.7 in September. Business activity in India's services sector picked up slightly in April after a March slowdown, driven by a faster rise in new orders and a corresponding uptick in employment, the survey said. Capacity pressures grew with a solid rise in unfinished work, while average charges increased at a faster pace despite cost pressures easing to a six-month low, it added. "India services activity rose at a faster pace than last month. New export orders gained momentum after taking a breather in March, accelerating at its fastest pace since July 2024," said Pranjul Bhandari, chief India economist at HSBC. "Margins improved as cost pressures eased and prices charged rose at a faster pace. Though firms remained optimistic about future growth, their confidence waned slightly," she added. India's services sector-a pillar of its economy-accounts for more than half of its gross domestic product (GDP). India's economy grew 8.2% in 2023-24, driven by a strong 7.8% expansion in the January-March quarter, surpassing the Reserve Bank of India's (RBI's) 7% forecast. However, growth lost steam in 2024-25, easing to 6.7% in the first quarter and further slowing to 5.4% in the second-its weakest pace in nearly two years-amid sluggish manufacturing, muted urban consumption, and weak corporate earnings. India's growth momentum picked up in the December quarter (Q3FY25) after a slowdown in Q2, with GDP rising 6.2%-the slowest pace since Q4FY23, excluding the previous quarter's revised 5.6%. The RBI forecasts 6.5% growth for FY26, supported by rural demand, public investment, and robust services exports. India's manufacturing sector grew at its fastest pace in 10 months in April, fueled by strong demand and rising output. The HSBC India Manufacturing PMI, compiled by S&P Global, rose to 58.2 in April from 58.1 in March and 56.3 in February. A reading above 50 signals expansion. The HSBC India Composite Output Index rose to 59.7 in April, up from 59.5 in March and 58.8 in February-the fastest expansion since August 2024. "New business volumes across the private sector rose at the fastest pace in eight months, helped by a pickup in growth across the service economy. The upturn at goods producers was broadly similar to March," the survey said. "Both manufacturing firms and their services counterparts registered faster expansions in new export orders. At the composite level, the rate of growth was at a nine-month high," it added....