India’s services growth at three-month high in December

India's services sector experienced a notable upswing in growth in December, reaching a three-month high, buoyed by increased demand and higher sales, as reported by a private survey released on Friday. According to the HSBC India Services Purchasing Managers’ Index (PMI), compiled by S&P, the index rose to 59 in December, a rise from the previous month's 56.9 and exceeding the October figure of 58.4.

While the current growth rate is slightly slower than the peak observed in July, when India's PMI reached 62.3, the consistent expansion of the services PMI for 29 consecutive months underscores sustained sectoral resilience, maintaining a position above the critical 50-point threshold that separates expansion from contraction.

This positive development in the services sector contrasts with a slowdown in manufacturing, which, in December, exhibited its slowest pace of growth in 18 months. The resurgence in services during December is anticipated to contribute positively to India's overall economic growth, aligning with the Reserve Bank of India's revised projection of 7% for the fiscal year 2023-24, up from its earlier estimate of 6.5%.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.