India’s service activity growth slower in April but still highest in 14 years

India’s services sector witnessed one of the strongest growth rates in just under 14 years due to a favourable economic environment and rising demand strength. The seasonally adjusted HSBC India Services Business Activity Index fell slightly from 61.2 in March to 60.8 in April.

In April, India’s service activity increased slightly slower, but there was a rise in new orders and strengthened domestic demand. As a result, firms registered gains from various parts of the world, leading to an uptick in international sales since September 2014.

Food prices and wages increased, causing higher costs for customers. Some new hirings were seen in April due to business growth, but many firms believe their current payroll numbers are sufficient. Job creation was minimal compared to the previous fiscal year.

staffing levels were increased due to demand for new orders, but hiring growth slowed. Output increased notably in both manufacturing and service sectors. The survey shows that demand conditions will remain favorable and service providers’ confidence level is at a three-month high. Total sales increased at a fast pace since 2010.

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