Despite elevated inflation amid the ongoing Ukraine war, activity in India’s services sector recovered to a three-month high in March, private survey data showed on April 6.
The S&P Global Purchasing Managers’ Index (PMI) for services rose to 53.6 points in March from 51.8 in February as firms recorded the fastest growth in sales and business activity so far in 2022 after Covid-19 related restrictions were lifted, reported Mint.
The improvement in the services activity was seen due to new business wins, rising demand scenario and increased consumer footfall due to easing restrictions as Covid-19 wanes.
A PMI reading above 50 shows expansion in activities, and if it is below 50, it means activities contracted. PMI is a monthly indicator and it shows month-on-month improvement in activities.
Input costs increased at the sharpest pace in 11 years at the end of the fiscal year 2022, but companies mostly absorbed the additional costs and raised the final price only moderately, Mint reported quoting the report. The report added that consumers may face higher service charges in the near future as cost pressures rise.
The Composite PMI Output Index, which accounts for both manufacturing and services activity rose to 54.3 in March from 53.5 in February. Input price inflation was more acute in services than in manufacturing, Mint said.
The Indian economy is showing signs of revival. The gross goods and services tax (GST) revenue collected in the month of March 2022 is ₹1.42 lakh crore, the highest ever since the implementation of the new taxation system. On the other hand, direct tax collections touched nearly ₹14 lakh crore mark in FY22, exceeding the revised estimates (RE) by ₹1.5 lakh crore and nearly hitting the estimates for the next fiscal.