Good news for the Indian economy. Service sector growth in India reached a 13-year high in July . This information has been given in a monthly survey on Thursday. It said that due to the tremendous improvement in demand and increased global sales, services sector activity has increased in July. The seasonally adjusted S&P Global India Services PMI Business Activity Index rose to 62.3 in July from 58.5 in June . This shows that the production has increased at the fastest pace since June 2010.
Expansion for 24th consecutive month
The services PMI index remained above 50 for the 24th consecutive month . In purchasing managers’ index (PMI) parlance, a score above 50 indicates expansion of activities and a score below 50 indicates contraction. “The resilience of the services sector is contributing significantly to India’s economy,” said Pollyanna De Lima, associate director of economics at S&P Global Market Intelligence. PmI data for July shows that its contribution to gross domestic product (GDP) in the second quarter will be quite significant. Members of the survey said the main contributors to this boom are demand growth and new orders. Demand for Indian services rose to a 13-year high in July .
Companies are rapidly getting new business
As many as 29 per cent of the respondents said they have received more new business during this period. “The widespread increase in sales in domestic and international markets is welcome news,” Lima said. Especially given the challenging global economic scenario. Companies’ services exports to many countries such as Bangladesh, Nepal, Sri Lanka and the United Arab Emirates (UAE) have increased. On the inflation front, he said, the monitoring companies’ food, , labour and transportation costs have gone up. However, , despite the cost pressure, companies have increased the fee less as they are cautious about their price strategy.
