New Delhi, Oct 5: India’s services sector demonstrated continued strength in September 2023, propelled by robust domestic demand and increased overseas client activity, according to a survey by S&P Global published on Thursday. The Purchasing Managers’ Index (PMI) for India rose to 61.0 in September from 60.1 in August, marking a notable upturn.
Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence, shared insights on the positive trajectory, stating, “The latest PMI results brought more positive news for India’s service economy, with September seeing business activity and new work intakes rising to one of the greatest extents in over 13 years. Besides demand strength domestically, firms noted higher international sales to Asia, Europe, and North America.”
As the services sector contributes over 50% to India’s GDP, its robust performance remains a crucial driver of economic growth. The survey revealed that service sector growth strengthened in September, buoyed by a favorable demand environment that led to increased new business and output volumes.
The S&P Global India Services PMI, compiled from responses to questionnaires sent to a panel of around 400 service sector companies, covers diverse segments including consumer (excluding retail), transport, information, communication, finance, insurance, real estate, and business services.
Key highlights from the survey include a significant increase in new business for Indian service providers in September, marking the second-fastest rate since June 2010. Anecdotal evidence highlighted favorable market dynamics supporting demand, with advertising cited as a key factor boosting sales.
The buoyant demand for Indian goods and services contributed to the second-sharpest increase in aggregate new business in over 13 years. Both the manufacturing and service economies recorded substantial expansions, with the latter experiencing an acceleration compared to a slowdown in the former, according to S&P Global.
