India's private sector expanded at its slowest pace in three months in june as weaker demand growth weighed on both factory and services activity, while business confidence slipped to its lowest level since January, a survey showed. * HSBC's flash India Composite Purchasing Managers' Index (PMI), compiled by S&P Global, fell to 57.4 this month from May's 59.3. A PMI reading above 50.0 indicates expansion in activity. * Overall new orders, a key gauge of demand, rose at their slowest pace since March with firms citing competitive pressures and gas shortages as obstacles to securing business.