Services sector growth at 7-month low in April, hit by Lok Sabha polls

Political and economic uncertainty arising out of the more-than a month long general elections, combined with rising competition, saw growth in the services sector reduce to a seven-month low in April, according to the widely-tracked Nikkei Purchasing Managers’ Index (PMI) report. 

The dominant sector of the Indian economy saw PMI for April go down to 51, after hitting 52 in March. The 50-point mark separates expansion from contraction. With growth slowing and price pressures easing, it is likely that RBI’s Monetary Policy Committee shall cut the policy rate for the third successive time in June, the PMI report said.

For services, growth