Fastest Growth In Service Sector After 18 Months In August: ReportRepresentative Image

Activities in the service sector in India grew the fastest in 18 months in August 2021, a survey has reported.

This development comes in the backdrop of lifting of Covid-related restrictions and ramping up of overall vaccination program across the country.

The India Services Business Activity Index hit 56.7 mark in August, as opposed to 45.4 in the previous month of July. It should be noted that 50 is considered to be the neutral threshold of the index, which crossed that mark for the first time in four months in August.

Increasing footfall and reopening of establishments are factors that have reportedly led to the growth of outputs in four months.

“A substantial pick-up in domestic demand underpinned the strongest monthly increase in new business for over eight-and-a half years and renewed growth of activity,” Pollyanna De Lima, economics associate director at IHS Markit India Services was quoted in a report by the Economic Times.

This study had apparently collated responses from about 400 service sector firms. It concluded that companies held adequate capacity to serve to the rising orders but they were also keeping new creation of jobs on hold simultaneously.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber