India Services Expanded at a Faster Pace in December, PMI ShowsUnni Krishnan
India’s service industries expanded at a faster pace in December, a private survey showed, after the government overhauled economic policies to revive growth.
The purchasing managers’ index rose to 55.6 from 52.1 in November, HSBC Holdings Plc and Markit Economics said in a statement today. A number above 50 indicates growth. Services account for about 57 percent of gross domestic product, Finance Ministry data shows.
India’s efforts to rival China as the fastest-growing major emerging nation have been hurt by budget and trade deficits and bottlenecks that have stoked inflation. The government since mid-September has stepped up efforts to lure more foreign investment, curb subsidies and stem a drop in exports.
“There are recovery signs,” said Rupa Rege Nitsure, an economist at Bank of Baroda in Mumbai. “But sentiment is still very subdued.”