4.3.21

February 2021: Services Growth Fastest in a Year


A quicker increase in new orders and stronger demand led to expansion in India’s service providers' business activity at the fastest rate in a year in February with the Covid-19 vaccine roll out leading to an improvement in business confidence.

The India Services Business Activity Index rose to 55.3 in February from 52.8 in January. A figure above 50 indicates expansion, while a sub-50 reading signals contraction.

However, employment continued to fall for third month in a row and companies noted the sharpest rise in overall expenses in eight years.

Transport & storage was the best-performing segment of the service sector among the five categories monitored by the survey, recording the strongest increases in new business and output during February.

Information & communication was the only sub-sector to post contraction in sales and business activity. Companies in this category also bucked the general trend of positive growth projections and signalled a neutral outlook for output, the survey showed.

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