Services output grows 13.5%, 17 of 19 sectors expand
The service sector is expected to maintain its underlying strength in the months ahead, said Rajani Sinha, chief economist at CareEdge Ratings. However, she added that the sector could, to some extent, be affected by challenging external environment, energy price volatility, and supply chain frictions.
New Delhi: India's services sector experienced broad-based expansion in July, with 17 out of 19 tracked sectors showing growth and 10 sectors recording double-digit gains, according to official data from the statistics ministry. The Index of Service Production (ISP) revealed that administrative and support services, retail trade, real estate, and accommodation and food services were among the sectors with the most significant growth rates.
According to CareEdge Ratings, services output surged by 13.5% year-on-year in July, slightly higher than the 13.2% growth observed in June. Rajani Sinha, chief economist at CareEdge Ratings, anticipates the service sector to maintain its underlying strength in the coming months, although she cautioned that external factors such as energy price volatility and supply chain disruptions could impact its performance.
The air transport sector continues to face challenges due to geopolitical tensions and rising energy costs, as highlighted by Sinha.
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