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Strong growth in the service sector in November, grew at the second fastest pace in a decade

India’s service sector grew at the second fastest pace in more than a decade during November. A monthly survey said on Friday that this is due to increase in new jobs and improving market conditions.

India’s service sector grew at the second fastest pace in more than a decade during November.

Service Sector Growth: India’s service sector grew at the second fastest pace in more than a decade during November. A monthly survey said on Friday that this is due to increase in new jobs and improving market conditions. The seasonally adjusted India Services Business Activity Index stood at 58.1 in November, down from 58.4 in October. The November figure shows the second fastest recovery in output since July 2011.

For the fourth consecutive month, the service sector output has increased. In the Purchasing Managers’ Index (PMI), a figure greater than 50 indicates an increase. Whereas, a score less than 50 indicates a decline.

Business confidence also increased

However, business confidence improved to a three-month high in November, according to the survey report. At the same time, the overall level of positive sentiment remained much lower than its long-term average. Some companies expect demand to remain high, but many others fear that rising inflation could impact the recovery. Moreover, the overall rate of inflation picked up in October and is at the second-strongest level in nearly a decade. It was highest in April.

Pollyanna De Lima, associate director of economics at IHS Markit, said the recovery in the Indian service sector continued in November. There has been a strong recovery in SAIL, which has led to the second fastest growth in business activity in nearly ten and a half years. While the companies had expected higher business activity volumes during the coming year, this increase could be under pressure from rising prices. Average input prices in Indian services increased further in November amid reports of increased oil, labour, material, retail and transport prices.

Meanwhile, the coronavirus pandemic and restrictions on travel have led to a further decline in international demand for Indian services, the survey said. This recent drop in external sales was the 21st in the coming months. However, it has been one of the slowest in this period. According to the survey, private sector activity in India continued to increase, taking the current growth sequence to four months.

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Shehnaz Ali
Shehnaz is a Corporate Communications Expert by profession and writer by Passion. She has experience of many years in the same. Her educational background in Mass communication has given her a broad base from which to approach many topics. She enjoys writing about Public relations, Corporate communications, travel, entrepreneurship, insurance, and finance among others.
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