BENGALURU, July 3 Reuters Growth in India39;s dominant services industry accelerated last month, buoyed by strong demand and a record rise in export orders, according to a business survey that also showed companies were hiring at the fastest in nearly two years.

HSBC39;s India Services Purchasing Managers39; Index, compiled by SP Global, rose to 60.5 in June from 60.2 in May, close to a Reuters poll median forecast of 60.6 and a preliminary reading of 60.4.

It has been above 50, which separates growth from contraction, for nearly three years.

Activity growth in Indias service sector accelerated in June … led by an increase in both domestic and international new orders, noted Pranjul Bhandari, chief India economist at HSBC.

New business a key gauge of demand has been above breakeven since August 2021 and expanded at a faster pace last month. That was supported by the fastest rise in international orders since the subindex was added to the survey nearly a decade ago.

That is good news for India39;s economic outlook, already the seventh largest services exporting country globally, according to the Reserve Bank of India.

Asia39;s thirdlargest economy posted fasterthanexpected growth of 7.8 in JanuaryMarch quarter but was expected to slow modestly this fiscal year, a Reuters poll found.

Strong demand encouraged service providers to recruit more staff. The pace of job creation was the strongest since August 2022, taking the current stretch of growth in hiring to…