Bank of India<\/a> seems realistic.<\/p>\n \u201cIn the whole year, the economy is expected to grow at 6.5% (as projected by RBI) or cross it by a small margin,” Srivastava said. In the second quarter, India\u2019s economy had grown at 7.6%.<\/p>\n
A notable growth story is in domestic air travel, with passenger traffic recording a near 27% growth in the April-October period.<\/p>\n
The main factor that comes in the way of economic growth is the external sector, Srivastava said.<\/p>\n
S&P pointed out that cooling price pressures and demand resilience inducing sales growth aided activity in November.<\/p>\n
Rates of both input cost and output charge inflation slipped to eight-month lows, it said.<\/p>\n
There was softer expansion in new work intake and output, the slowest in a year, but they were nevertheless sharp and well above their respective long-run averages, S&P said.<\/p>\n
Services PMI was reported at 61 in September, 60.1 in August, 62.3 in July, 58.5 in June, 61.2 in May, 62 in April and 57.8 in March.<\/p>\n
\u201cGranular data showed widespread slowdown in rates of growth for both new orders and output across the four broad areas of the service economy. Finance and insurance topped the rankings, while real estate and business services came last,” said the S&P Global statement.<\/p>\n
It showed that international demand for Indian services improved further, but as for total new orders, growth lost momentum.<\/p>\n
The latest increase in new export orders was moderate and the slowest since June.<\/p>\n
As per official figures, India has an export surplus in services.<\/p>\n
S&P noted that although the overall rate of growth softened to the weakest since November 2022, it was sharp and above the series trend.<\/p>\n
\u201cDespite falling from 58.4 in October to a one-year low of 56.9 in November, the seasonally adjusted S&P Global India Services Business Activity Index pointed to a sharp increase in output across the sector. The rate of expansion was also considerably stronger than its long-run average. Survey participants that signalled growth mentioned favourable demand trends and new business gains,” it said.<\/p>\n
Pollyanna De Lima, economics associate director at S&P Global Market<\/a> Intelligence, said in the statement, \u201cIndia\u2019s service sector has lost further growth momentum midway through the third fiscal quarter, but we continue to see robust demand for services fuelling new business intakes and output. The current rates of expansion look very healthy when considering their respective long-run averages and the outlook for business activity remains bright in spite of optimism fading due to rising inflation expectations.”<\/p>\n She noted that there was some relief for service providers in India on the cost front, with the rate of input price inflation receding to the weakest in eight months. Fewer companies hiked their fees as a result, an aspect that might provide a further boost to demand as 2023 draws to a close, De Lima said.<\/p>\n
\u201cUnderstandably, given the lack of pressure on operating capacities signalled by stable backlog levels, services firms became more cautious when it comes to hiring. Net employment still rose in November, but the rate of job creation was marginal and the slowest in seven months,” she added.<\/p>\n
Chief economic adviser Anantha Nageswaran had said last month that with the economy growing at 7.6% in real terms in the September quarter, India is now set to achieve 6.5% growth comfortably in the current fiscal.<\/p>\n
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