1 min read.Updated: 03 Aug 2022, 10:27 PM ISTLivemint
For the sector to get a boost, we must explore fresh opportunities in using new technologies for a global outreach of services. For this, international trade barriers need to fall
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Unlike the robust rise in manufacturing, India’s large services sector has experienced a loss in momentum, with its purchasing managers’ index declining to 55.5 in July from June’s 11-year high of 59.2. Before we turn gloomy, the latest reading is still good for a pandemic-cramped sector, having exceeded the 50 mark that separates expansion and contraction by a healthy margin. July’s cool-off needs to be seen in the context of June’s spectacular showing that would have been hard to keep up. A further drop shouldn’t surprise us, given the persistence of abnormally high levels of uncertainty. A global slowdown could soon compress foreign demand. Thankfully, domestic impulses have not shown signs of flagging much. A spring-back from covid remains palpable.