Mint Quick Edit | India’s services sector seems to be on a roll

Also Read: Mint Quick Edit | PMI cheer: Indian factories are in high gear

Readings above 50 indicate an expansion in activity, while those below point to a contraction. That it rose further above the 60 mark suggests strong activity in the sector that accounts for the bulk of India’s economy. 

Also Read: Devina Mehra: The Indian IT services model has finally begun to falter… or has it?

Last month’s spurt was driven by a surge in overseas demand, with export orders rising the most in more than a year. Although services have so far been spared by US tariffs, uncertainty prevails over which way American policy will turn next (or on what). The sector’s strong showing bodes well for India’s growth trajectory.

Also Read: Manufacturing versus services: Why privilege one over the other?

Analysts have wondered if last week’s GDP data exaggerated how fast services were growing, given questions on the accuracy of its inflation adjustment, but order-book buoyancy should reassure us of this sector’s dynamism even as we keep an eye on the inflationary pressures detected by the PMI survey.