new delhi, Sept. 4 -- India's service sector saw its strongest growth in 15 years in August, driven by a surge in demand and new business, according to a private survey released on Wednesday. The HSBC India Services Purchasing Managers' Index (PMI), compiled by S&P Global, climbed to 62.9 in August, up from 60.5 in July and 60.4 in June. This marks the fastest growth since June 2010. The index has now remained above the 50-point threshold, which separates growth from contraction, for over four years, highlighting the sector's sustained momentum. According to the survey, the rise in international sales was the third-strongest since the series began in 2014. This robust demand led services firms to hire more workers, although outstanding business only rose marginally. The HSBC India Services PMI is based on a survey of around 400 firms, covering a wide range of service industries. These include consumer services (excluding retail), transport, information and communication, finance, insurance, real estate and business services. "India's services PMI Business Activity Index reached a fifteen-year high.on the back of surging new orders. The broad-based expansion in international sales bolstered overall demand, which prompted Indian services firms to hire additional workers," said Pranjul Bhandari, chief India economist at HSBC. Bhandari also pointed out that higher labour costs and strong demand led to a substantial increase in both input and output prices in August. The Composite PMI-which includes both services and manufacturing-rose to a 17-year high of 63.2 in August, indicating robust, broad-based output growth across both sectors. Manufacturing activity also gained momentum. The HSBC India Manufacturing PMI rose to 59.3 in August, up from 59.1 in July, supported by solid gains in output and new orders. The services sector, which accounts for over half of India's GDP, has been a key driver of the nation's recent economic expansion. India's GDP grew by 7.8% in Q1 FY26, the fastest pace in five quarters. This follows a 6.5% expansion in FY25, and a 9.2% expansion in FY24, which was ahead of the Reserve Bank of India's (RBI) projection. The RBI expects GDP growth to remain at 6.5% in FY26, supported by rural demand, public investment, and resilient services exports. The survey noted that the composite index's acceleration was supported by new business intakes, which reached their highest rate since mid-2010. While aggregate employment rose at a solid pace, growth in the services sector was more pronounced....