Prices, rates hit services

High prices and increase in interest rates appear to have hurt the services sector that account for more than two-thirds of India's GDP. HT reports.

High prices and increase in interest rates appear to have hurt the services sector that account for more than two-thirds of India's GDP.

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Most services segments grew at slower pace in the January-March quarter as the RBI turned on the screws through a series of interest rate hikes to tame the inflation monster.

Financing, insurance, real estate and business service grew 9% during the period against 6.3% a year ago. Construction also grew at a slower 8.2% compared to 9.2% a year ago.