India’s services PMI hits almost 13-year high

India’s services sector experienced a growth surge with PMI Business Activity Index rising from 57.8 in March to 62.0 in April. Despite an increase in prices, the demand in the sector remained strong.

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India’s services sector experienced significant growth in April, with the fastest rise in new business and output in almost 13 years due to robust demand. Despite an increase in prices, the demand in the sector remained strong.

In April, the S&P Global India Services Purchasing Managers’ Index (PMI) Business Activity Index increased from 57.8 in March to 62.0 in April, indicating the most rapid expansion in output since mid-2010. It is due to a rise in new business growth and favourable market conditions.

For the 21st consecutive month, the headline figure in the PMI remained above the critical threshold of 50, indicating expansion. A score below 50 denotes contraction, as per the PMI terminology.

“India’s service sector posted a remarkable performance in April, with demand strength backing the strongest increases in new business and output in just under 13 years. Finance & Insurance was the brightest spot, topping the sectoral growth rankings for both measures,” said Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence.

The monitored firms indicated a boost in overseas demand for Indian services in April. The new export business grew for the third consecutive month and at the most rapid rate during this period. Meanwhile, input costs increased at the fastest pace in three months in April.