New Delhi, March 5 (KNN) Back to back of announcing a slower growth in Manufacturing in India, HSBC research released on Wednesday that the seasonally-adjusted Service Sector Business Activity Index rose to 53.9 in February from 52.4 in January. A gauge of services activity in India, the index rose to an eight-month high in February thanks to strong growth in new orders.
 
HSBC said services firms remained optimistic about stronger growth during the year as low inflation and favourable exchange rates help lift demand.
 
Services contribute about 60% to India’s gross domestic product and the sector’s performance is key to building up growth momentum in the economy.
 
The findings follow a similar survey by HSBC released on Monday that showed activity in the manufacturing sector expanded at the slowest pace in five months.
 
Concerned with the perennial lagging of the manufacturing in the economy, Modi Government has announced ‘Make in India’ to upscale manufacturing with a thrust on domestic production of defence equipments, consumer electronics and other import heavy items. The Government has also liberalised foreign investments with various sops in the current budget. Backed with stress on infrastructure development by the government, the budget announcements are expected to launch resurgence of Indian manufacturing.
 
However, as mentioned in another story in KNN, the lop sided tariff structure of taxing the inputs more than the products continues. Tariff on Steel being more than the finished auto components, we need not guess what the Industry will opt for – to make or to import? (KNN/DB)