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India’s services sector witnessed a fastest growth in the month of April, with demand strength promoting the fastest increases in new business and output in close to 13 years. Companies became more optimistic towards future business activity, but job creation remained negligible.

As per the survey report, the seasonally adjusted S&P Global India Services PMI Business Activity Index jumped to 62.0 in April from 57.8 in March. Further, the S&P Global India Composite PMI Output Index -- which measures both manufacturing and services -- also surged to 61.6 in April from 58.4 in March.

Mirroring the trend for business activity, new orders rose at the fastest pace since June 2010. Growth was linked to strong demand for services and competitive pricing. Finance & Insurance topped the sector rankings for sales. New export business expanded for the third month in succession and at the fastest pace over this period.

On the inflation front, the combination of rising input costs and demand resilience urged services companies to lift their selling prices in April. The rate of charge inflation was marked and the strongest in 2023 so far. Indeed, outstanding business volumes increased only marginally in April. The latest rise was the sixteenth in as many months, albeit one of the slowest over this period.