Sluggish demand and lower customer turnout due to the Goods and Services Tax (GST) rollout made India’s service activity contract for the first time in three months in November, a private survey showed on Tuesday.
The Nikkei India Services PMI Business Activity Index plunged from 51.7 in October to 48.5 in November.
A reading above 50 indicates economic expansion, while a reading below 50 points toward contraction. Click to read more
Services sector activity in the country plummeted sharply during November on the back of rising prices driven up by the recently implemented Goods and Service Tax (GST). GST led to weak demand and resulted in lower customer turnout in the services industry, a monthly survey said on Tuesday.
India’s services sector plunged into contraction for the first time in three months. November’s Nikkei/IHS Markit Services Purchasing Managers’ Index fell to 48.5 – its lowest since August – from 51.7 in October, well below the 50 mark that separates expansion from contraction. Click to read more
Five months into the Goods and Services Tax (GST) and its effect on various sectors have been giving mixed signals. The manufacturing sector in November recorded the strongest improvement in business activity in 13 months as new orders picked up supported by the reduction in GST rates and strong demand conditions, while, at the same time, the services activity slipped due sluggish demand and lower customer turnout, monthly PMI survey showed. Click to read more
As the Reserve Bank of India’s monetary policy committee is all set to deliver its verdict onc on Wednesday, the purchasing managers index (PMI) readings for November indicate that the economy is still not out of the woods.
The Nikkei India Services PMI shows that private sector activity in the services sector contracted in November, with the reading falling to 48.5 from 51.7 in October. A reading below 50 indicates contraction from the previous month. Those surveyed said the introduction of the goods and services tax (GST) had led to ‘subdued demand conditions’. Click to read more
India’s services activity contracted for the first time in three months in November, on account of sluggish demand and lower customer turnout due to the implementation of Goods and Services Tax (GST), a business survey revealed.
Nikkei Services Purchasing Managers’ Index (PMI) fell to 48.5 in November from 51.7 in October, lowest since August. A reading below 50 mark means contraction while, above that indicates expansion, reported Reuters.
“Panellists widely blamed the deterioration in business performance due to the goods and service tax (GST), which led to a fall in the new orders index,” according to the Nikkei PMI press release. Click to read more
With textile imports seeing a sharp increase in the past few months, the industry is blaming GST for the rise stating that lower import duties are leading to overseas fabric and garments flooding the Indian market. Cotton fabric imports surged 45% in July, was up 29% and 12% for August and September respectively. Import of textile yarn, fabric and made-ups increased 12% year-on-year in October to $153.9 million, according to estimates. Click to read more
The goods and services tax (GST) has reduced the cost of Delhi Metro’s Phase-IV project by more than Rs2,500 crore, but the deadline for the new 104km network was delayed by a year because of lack of consensus between the Centre and Delhi government.
The additional six new lines to boost connectivity on the city’s outskirts, the airport and south Delhi was estimated to cost Rs55,208 crore, according to the detailed project report (DPR) drafted in 2014.
A revised report submitted to the Delhi government this May put the cost at Rs52,625 crore, after accounting for GST rates that the finance ministry had given to Delhi Metro before the new taxation system was rolled out in July. Click to read more