April saw the highest growth in new business and output in over 13 years for India’s services sector as a result of robust demand conditions. The service industry in India had a stellar month in April, with strong demand supporting the greatest gains in new business and output in less than 13 years. The sector with the fastest sectoral growth for both measures was finance & insurance.
In April, monitored companies indicated a rise in demand for Indian services abroad. The third month in a row saw the fastest growth of new export business during this time. Services organisations were forced to increase their selling prices in April as a result of both growing input costs and a resilient demand environment. The pace of price inflation was noticeable and the highest so far in 2023.
Despite a significant increase in new orders, the service sector’s workforce levels only slightly rose at the beginning of the first fiscal quarter. While some businesses increased headcounts in response to increasing output demands, the vast majority did not because there were enough workers to meet current needs. Despite a significant increase in new orders, the service sector’s workforce levels only slightly rose at the beginning of the first fiscal quarter. While some businesses increased headcounts in response to increasing output demands, the vast majority did not because there were enough workers to meet current needs.
In comparison to 2% of businesses that expect a decline in business activity over the next 12 months, over 22% predict growth in company activity. Despite the significant increase in revenues, the private sector’s job growth remained modest. The rates of expansion at manufacturing companies and their equivalents in the service sector were largely identical.