Services Sector Growth In India: 11-year Old Record Broken

Services Sector growth in India: the 11-year record was broken, and the fastest growth in the service sector in June 2022.

The fast-growing service sector in India has broken the record in the last 11 years by leaping high.

This increase is considered important in view of the positive signs of strengthening of demand in the month of June. However, concerns about rising inflation still persist.

What is the service growth figure?

The S&P Global India Services Purchasing Managers Index rose to 59.2 in June from 58.9 in May. This is its highest level, the highest since April 2011.

Let us tell you that the service growth figure has remained above 50 continuously. A Reuters poll predicted a fall to 58.7.

Strong demand, pick-up in sales, and favorable economic conditions kept the new order sub-index higher.

Services Sector growth in India: what are the important reasons?

Pauliana De Lima, director of S&P Global Market Intelligence, said improving demand for services in the first quarter of the fiscal year 2022-23 supported the economy.

Due to this, the service sector is expected to remain strong in the coming times as well.” Let us tell you that the contribution of the service sector to India’s GDP is more than 50 percent.

The service sector gets the maximum foreign direct investment in India.

Rising inflation concerns.

Inflation is a serious problem and due to this, the input cost of companies has increased. Input costs are still very high, despite hitting a three-month low in June.

Inflation also remained high during this period. Due to the high cost of chemicals, food, and petroleum, many firms increased the prices of their goods.

S&P Global said the impact of price increases was most visible in the transportation, information, and communications industries.

Petrol-Diesel Price Today: The cheapest diesel and petrol are available here, you will be surprised to know the price

Tuesday is proving to be a relief for the customers. Despite all the apprehensions, there has been no change in the price of petrol and diesel for the 45th consecutive day.

The fuel prices have remained stable since May 21.

The price of petrol was reduced by Rs 9.5 per liter and diesel by Rs 7 per liter after  Finance Minister announced a reduction of excise duty on petrol and diesel by Rs 8 and Rs 6 per liter respectively.