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India’s Oct services growth strongest in over a decade, input costs surge

India’s dominant services industry expanded at the fastest pace in more than a decade on improved domestic demand despite high inflation, driving firms to take on staff at a rate not seen since the onset of the pandemic, a private survey showed. The survey showed Asia’s third-largest economy was on a sustained recovery path but rising prices could prompt the Reserve Bank of India to hike interest rates earlier than expected, putting the brakes on growth. “A substantial rise in prices charged for the provision of services in India had no detrimental impact on demand, as companies signalled the strongest monthly expansion in new business in over a decade,” said Pollyanna De Lima, economics associate director at IHS Markit.

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