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India Services PMI Slumps as Pressure Builds on Modi to Spur GDP

  • Services pull down composite PMI even as manufacturing expands
  • Inflation risks prompt central bank to stand pat on rates

A private survey showed India’s dominant services sector contracted for the first time in three months, adding pressure on Prime Minister Narendra Modi to undertake economic reforms to boost growth amid a hawkish turn from the central bank.

The Nikkei India Services Purchasing Managers’ Index slid to 47.8 in February -- the lowest since August -- from 51.7 in January, as business conditions deteriorated due to poor demand, a report showed Monday. A number below 50 indicates a contraction.