Key Factors & Figures

As per a report by the S&P Global India Composite, India’s services industry has expanded faster than expected in August, thanks to robust growth in demand and ease in cost pressures.

The country’s Purchasing Managers' Index or PMI index climbed to 57.2 in August from a four-month low of 55.5 in July, exceeding Reuters’ estimate of 55, and remained above the 50-mark separating growth from contraction for a 13th straight month, stated reports.

According to the survey, a stronger expansion in new businesses encouraged companies to hire at the fastest pace in over 14 years.

"The pick-up in growth stemmed from a rebound in new business gains as firms continued to benefit from the lifting of COVID-19 restrictions and ongoing marketing efforts," stated Pollyanna De Lima at S&P Global.

Business confidence also bolstered in the month to the highest since May 2018.

This encouraged companies to raise hiring at the fastest pace since June 2008. Finance and insurance was the brightest area of the service economy in August, leading with regards to growth of sales and output, cited the survey.