India's services PMI (Purchase Managers' Index) reached 51.2 points in August as august July’s 47.9 points. 

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Order book volumes increased in August 2017, after having posted the worst performance since early- 2009 during July, stated Nikkei. 

Pollyanna De Lima, Principal Economist at IHS Markit and author of the report, said, “August’s PMI results showed that manufacturers in India recovered quickly from the sharp slump that followed the introduction of the goods & services tax."

"In July, firms indicated that orders, production and purchasing had been postponed due to a lack of clarity about the new tax regime, but they have now been resumed as manufacturers, suppliers and their clients have become more knowledgeable of the GST rates," added De Lima. 

De Lima said, "All sub-sectors posted substantial recoveries, with capital goods outperforming its consumer and intermediate goods counterparts regarding growth rates for production."

New export business also rose, however at the slowest pace in the current three-month period of growth.