A new order inflow that surfaced from the export market in December 2019 has boosted the growth output of India’s service sector. The IHS Markit India Services Business Activity Index's analysis indicated a rise in the counts which was 52.7 in November to 53.3 in December. This is estimated to be the second-strongest rate of increase in output in over a year.

The report also highlighted that survey members have linked the rise to magnify the market conditions and

create an environment that supports the growth of new businesses. Furthermore, the report said that the upturn in total new work was achieved with the support of international markets, with services exports rising for the tenth straight month in December.

Pollyanna de Lima, Principal Economist at IHS Markit, said: “It's encouraging to see the Indian service sector continuing to recover from the subdued performances noted in September and October. Worryingly, however, were the survey's results for price indicators. While inflation was subdued in the earlier part of 2019, there were three consecutive accelerations in the rate of input cost inflation this quarter. Services firms saw the fastest rise in their expenses in almost seven years in December."

He further talks about the key factor that has supported the exponential growth of the aggregate new orders. It is none other than the joint-strongest that has evolved over the last three years. This set of circumstances has increased the rates of sales picked up among goods producers and service providers.