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UPSC Syllabus: Mains – GS Paper III – Indian economy

Context: India’s service sector growth in at three-month low as per April Data.

Reason: Ongoing Pandemic and low economic activity. The pandemic has reduced demand, particularly in overseas markets. Nationwide store closures and prohibition to leave the house weighed heavily on the services economy.

Purchasing Managers Index (PMI)

  • PMI and is considered as an indicator of the economic health, business momentum in the industrial sector of an economy and investor sentiments about the manufacturing sector.
  • In PMI data, a reading above 50 points indicates economic expansion, while a reading below 50 points shows the contraction of economic activities.
  • The PMI is constructed separately for manufacturing and services sector. But the manufacturing sector holds more importance.
  • India’s PMI went down to 47.9.

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