India’s economy picked up speed in September as a revival in demand and business activity helped drive the South Asian nation toward recovery from the pandemic-induced slump. Activity in India’s dominant services sector continued to recover, with the main index rising to 49.8 in September from 41.8 in August. While that’s a marked improvement from April’s record low of 5.4, a number below 50 suggests it’s still in contraction territory and will probably be a drag on overall growth in the July-September quarter. Manufacturing activity was a bright spot, with the purchasing managers index rising to 56.8 — the highest reading since January 2012 — on the back of a sharp expansion in new work orders, according to IHS Markit. Exports returned to positive territory with shipments rising 6% in September from a year earlier. Industrial production fell 8% in August from a year earlier, shallower than July’s revised 10.8% contraction.

(Economic Times)