In March, the HSBC India Services Business Activity Index surged due to strong demand and new export orders, leading to a substantial increase in total sales and business activity in close to 14 years.
Businesses in India are optimistic on demand conditions despite apprehensions about global recession though challenges from a shortfall in monsoon due to El Nino conditions still persist, as per Britannia. Any shortfall in monsoon due to the El Nino conditions as forecasted, would also have a higher impact on rural consumption and the Indian economy as a whole.
Macro headwinds amid the looming fears of a global recession have weighed on discretionary technology demand in key verticals such as banking, financial services and insurance and high-tech, and important geographies of US and Europe.