India services sector growth dips in March

The HSBC Services Purchasing Managers’ Index fell from February’s 53.9 to 53.0 in March [Image: Archives]

Indian services growth slowed in March, says a new business survey by HSBC unveiled on Monday.

The HSBC Services Purchasing Managers’ Index fell from February’s 53.9 to 53.0 in March.

A reading above 50 indicates growth.

Decreased activity at service firms, which make up over half the economy, is not good news for policymakers, especially after February’s first annual budget from Indian Prime Minister Narendra Modi’s government failed to deliver big-bang reforms.

With Monday’s data, the Central Bank of India is likely to remain cautious when deciding on interest rates.

The Reserve Bank of India and the government agreed earlier this year to overhaul monetary policy and set an inflation target of 4 per cent by March 2017.

 

TBP and Agencies