Services growth at 13-year high in April

S&P’s Services PMI rose to 62 in April from 57.8 in March India’s services exports grew a record 26.6% in FY23 to touch $322 billion, while services imports rose 22.2% to $179

- Ravi Dutta Mishra

India’s services sector recorded its strongest output growth in nearly 13 years in April, driven by the finance and insurance sectors, a private survey showed, even as price pressures intensified and job creation stagnated.

The S&P Global India Services PMI Business Activity Index rose to 62 in April from 57.8 in March, signalling the fastest expansion in output since mid-2010. A reading above 50 indicates an expansion in activity.

India’s economy has shown promising signs of growth, with record-high goods and services tax collections and other impressive metrics despite the ongoing global economic uncertainties. However, challenges remain, with the unemployment rate climbing to a four-month high and global crude oil prices remaining volatile.

Economist Sachchidanand Shukla said that in FY23, India witnessed the first full year of economic activity without covid impact, especially in services. “All categories of services are doing very well, including aviation. There may be some base effect, but growth momentum in the services sector remains high, and we should see this sustain."