In May, India’s services sector also collapses
Growth is at 50.2, just above the 50-point threshold indicating the contraction or expansion of the sector. Stagnation is due to the decrease in domestic demand. For months, experts have accused the government of rigging the data so as not to compromise the elections.
New Delhi (AsiaNews) - In India the services sector, which for years has driven the rampant growth of the national economy, also collapsed in May. Today’s news represents a fresh blow for the newly installed government, after the general growth results published last week that reveal that the Indian economy is in decline.
The report is from a private institution that calculated the PMI value (Purchasing Managers Index) for the month of May, that is the composite index of manufacturing activity and services of a country developed by the Nikkei / IHS Markit Services group. The study reveals that in this period in India the PMI level was just 50.2, which is slightly above the 50-point threshold that indicates the contraction or expansion of the sector.
The reason for the economic stagnation would be due to the decrease in domestic demand for goods and services, despite the price level remaining constant. The foreign demand is also at the lowest levels in a year, as is the index of new orders made in the last eight months.
The data is another blow to the Narendra Modi government that has just started its second term. In fact, already in recent months, analysts warned against the contraction of the economic sector. The alarms have remained mostly ignored by the rulers, if not even covered up.
This is the case of the report on the employment situation in the country that the Narendra Modi government did not want to publish, because it revealed that unemployment has reached 6.1% of the workforce, that is the highest rate for 45 years. The timing with which the economic data is being disclosed (the general economy last week and today the one on services) seems to justify the recent denunciation of over 100 experts who accused Modi of tampering with the data so as not to influence the results of the general elections.