Following the GDP data, another positive economic data emerged: the PMI Services Index rose to 59.8. What does this mean?:

News Topical, Digital Desk : Following the GDP data, there's more good news on the Indian economy. India's service sector recorded a growth rate in November, driven by a surge in new business and reduced price pressure. The PMI Services Index rose to 59.8 in November from 58.9 in October. In Purchasing Managers' Index (PMI) parlance, a score above 50 indicates expansion, while a score below 50 indicates contraction.

"International sales continued to improve, with companies reporting gains in sales from Asia, Europe and the Middle East. However, the rate of expansion slowed to its lowest in eight months, largely because the supply of cheaper services elsewhere slowed growth," said Pranjul Bhandari, chief economist at HSBC.

Composite PMI remained strong

Bhandari said international sales fell to an eight-month low due to cheaper services abroad. Bhandari further said job creation growth was modest, as most companies did not report any new hires.

Meanwhile, India's composite PMI remained strong but fell slightly to 59.7 in November, reflecting a slowdown in factory output growth. The composite PMI index is a weighted average of the similar manufacturing and services PMI indices.

Earlier, while releasing GDP data, the government stated that the manufacturing sector performed the best, growing at 9.1%, while the agricultural sector remained at 3.5%. On the consumption front, private consumption consumption (PFCE) grew by 7.9%, significantly improving from 6.4% last year. Gross Capital Formation (GFCF), an indicator of investment, also recorded a strong 7.3% growth.