India’s service sector grew at its fastest rate in 13 years: S&P Global Index 

The Purchasing Management Index (PMI) data issued on Thursday revealed that India’s major services sector maintained its strong performance in July, as total sales increased at the fastest rate since June 2010, as per a report in the Economic Times.

S&P Global’s index for India's services sector increased from 58.5 in June to62.3 in July. Analysts from Reuters had predicted a decline to 58.0. For two years, the services PMI for India has been above the 50-point threshold that separates growth from expansion.

Although the manufacturing sector PMI for India fell to 57.7 in July, the overall S&P Global India Composite PMI Output Index reached a 13-year high of 61.9.

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“The resilience of the service sector underscores its vital role in fuelling India's economy, with the PMI results for July so far pointing to a notable contribution from the sector to overall GDP for the second fiscal quarter,” the Economic Times quoted Pollyanna De Lima, the economics director at S&P Global Market Intelligence, as saying.

With the overall demand remaining strong, the new-business sub-index indicated that the demand growth in July was at its highest since June 2010.The release further said that Bangladesh, Nepal, Sri Lanka and the UAE were key sources of international growth.

Operating costs increased at their quickest rate since June 2022, and businesses passed some of that cost on to consumers, although comparatively slower than in the previous three months due to their careful price setting.

De Lima was quoted as saying thatcompetitive advantage continued to support demand for Indian services, as rise in output costs remained modest compared to other countries.

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