Services output grows 13.5%, 17 of 19 sectors expand

The Indian service sector has seen a significant growth of 13.5% in recent times, with 17 out of 19 sectors reporting an expansion. This growth is a positive sign for the economy, as the service sector is a major contributor to India's GDP. The sector's underlying strength is expected to continue in the months ahead, according to Rajani Sinha, chief economist at CareEdge Ratings. However, she notes that external factors such as energy price volatility and supply chain frictions could potentially impact the sector's performance.

Why it matters

The service sector is expected to maintain its underlying strength in the months ahead. This could lift investor sentiment and pull in foreign capital.

Market impact

Transmission channels

Likely winners & losers

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