The services sector growth expanded at its fastest pace in nearly 13 years as the PMI index jumped to 62 in April from 57.8 a month earlier, in spite of escalating price pressure.

However, the job situation is yet to improve, the private survey said.

The seasonally adjusted S&P Global India Services PMI Business Activity Index rose from 57.8 in March to 62 in April, signalling the fastest expansion in output since mid 2010, amid a pick-up in new business growth and favourable market conditions.

“India’s service sector posted a remarkable performance in April, with demand strength backing the strongest increases in new business and output in just under 13 years.

Finance and insurance was the brightest spot, topping the sectoral growth rankings for both measures,” said Pollyanna De Lima, economics associate director at S&P Global Market Intelligence.

For the 21st straight month, the headline figure was above the neutral 50 threshold. In Purchasing Managers’ Index (PMI) parlance, a print above 50 means expansion while a score below 50 denotes contraction.

Monitored companies signalled an improvement in international demand for Indian services in April. New export business expanded for the third month in succession and at the fastest pace over this period.

On the prices front, input costs rose at the quickest pace in three months during April.

According to survey members, food, fuel, medicine, transportation and wages were the main sources of inflation.

Consumer services recorded the fastest upturn in average expenses.

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.