India's services sector growth slowed to its lowest level in four-and-a-half years in July, as softer domestic and export demand, along with intense competition, weighed on business activity, according to the latest HSBC India Services PMI survey.

The HSBC India Services PMI Business Activity Index declined to 53.3 in July from 57.4 in June, marking the weakest expansion in 53 months. Although the index remained above the 50-mark, indicating continued growth, the pace of expansion moderated significantly.

The survey noted that new business inflows increased at a slower pace amid weakening demand conditions and competitive pressures, resulting in the slowest growth in services activity since early 2022.