New Delhi, Aug 5: India’s services sector continued to grow at a robust pace in July on the back of strong demand, which led to higher job creation during the month, according to an HSBC survey released on Monday.
The HSBC final India Services Purchasing Managers’ Index, compiled by S&P Global, stood at 60.3 in July which is about the same level as 60.5 for June. The overall pace of expansion was robust with the index staying well above the 50-mark that separates contraction from expansion, marking the strong pace for the last three years.
“Service sector activity rose at a slightly slower pace in July, with new business increasing further, primarily driven by domestic demand. Looking ahead, services firms remained optimistic about the outlook for the year ahead,” observed Pranjul Bhandari, HSBC’s chief economist in India.
Overseas demand, though increasing at a slower pace than June’s fastest 10-year rise, also remained strong during the month. New export business clocked the third-highest rate of growth since the sub-index was introduced in 2014. The surge comes on the back of high growth recorded in May and June as well.
The solid demand outlook drove a rebound in expectations for activity in the next 12 months, lifting the future activity sub-index. This resulted in strong hiring, despite a marginal dip in June’s 22-month high as companies hired more workers to meet the increased demand, the survey said.
With the government’s big push for creating more jobs, the Union Budget 2024-25, presented in Parliament on July 23, aims to accelerate job creation with a focus on the country’s youth and empowering women. Union Finance Minister Nirmala Sitharaman announced a Prime Minister’s package of five schemes aimed at facilitating employment and skilling of youth, with an allocation of Rs 2 lakh crore.
The budget has also allocated as much as Rs 3 lakh crore in programmes that will enable more women to enter the workforce and contribute to the country’s inclusive development aligned with the Viksit Bharat goal, the Finance Minister said.
IANS