August service activity grows at fastest pace since pandemic began

India's dominant services industry returned to growth in August, expanding at its fastest pace since the pandemic began, as businesses reopened amid improved vaccination rates, a survey showed on Friday, although firms continued to cut jobs.

Despite the impact of the second wave of the COVID-19 pandemic, India's economic growth reached a record 20.1% in the June quarter but analysts have said vaccination coverage remains crucial to sustaining the recovery.

The IHS Markit Services Purchasing Managers' Index rose to 56.7 in August - its strongest pace since the pandemic hit the country in March 2020 and well above the 50-level