The seasonally adjusted HSBC India Services Business Activity Index fell from 61.2 in March to 60.8 in April, highlighting one of the strongest growth rates seen in just under 14 years.
India’s services activity growth remained the fastest in the last 14 years though month-on-month there has been in between favourable economic conditions and strong demand. However, India’s service growth toned down a bit in April. The seasonally adjusted HSBC India Services Business Activity Index fell from 61.2 in March to 60.8 in April, highlighting one of the strongest growth rates seen in just under 14 years.
A favourable economic environment, rising demand strength and the addition of new work are the main reasons behind the latest upsurge in the output as mentioned by the members of the survey.
Pranjul Bhandari, who is the Chief India Economist at HSBC said, ‘’India’s service activity increased at a little slower speed in April, a further rise in new orders, strengthened domestic demand’’.
Domestic demand soared as firms registered gains from various parts of the world. As a result, international sales have seen an uptick since September 2014.
Higher food prices and wage pressures led to an upsurge in cost load, which was transferred towards the customers whereas, in the job sector, new hirings were seen in April, because of the growth of the new business. Though, many firms asserted that for current requirements payroll numbers were enough. Job creation was minimal compared to what it was in the last fiscal year.
Staffing levels were increased because of the demand for new orders but the growth of hiring marked a slowdown, added Bhandari. A notable increase was seen in the total output in both the sectors, manufacturing and service sectors respectively, he added.
As per the survey, demand conditions will remain favourable, and confidence level among the service providers has manifolded to a three-month high. The number of total sales jumped up and the speed has been declared as one the fastest since 2010.
(With PTI inputs)
Source:financialexpress.com