New Delhi: The rate of expansion of India’s service sector in August is at a four-year low, a monthly survey revealed on Thursday (September 3), reported Press Trust of India.While the seasonally adjusted HSBC India Services PMI Business Activity Index rose from 53.3 in July to 54.1 in August, signifying an expansion in services activity, the pace of growth of the service sector was the second-lowest since March 2022, amid subdued bookings, strong competition and reduced transport operations, reported PTI.The HSBC India Services PMI Business Activity Index is based on a single question asking how the level of business activity compares with the situation the month before.“India’s services activity expanded faster in August. Growth was supported by stronger output and new business, although the overall pace was still among the weakest seen in over four years, with some firms citing subdued bookings, competition and reduced transport operations,” said Pranjul Bhandari, chief India economist at HSBC.The HSBC India Services PMI is compiled by S&P Global based on responses to questionnaires sent to a panel of around 400 service sector companies.Companies reported more spending on digital platforms, electricity, inputs, labour, marketing and regulatory requirements.Last year, in its report titled “India’s Services Sector: Insights from Employment Trends,” the NITI Aayog had highlighted that while services generate more than half of India’s national output, they provide less than one-third of total jobs, most of which are informal and low-paying.“Despite the centrality of services in India’s economic structure, the sector continues to be marked by high levels of informality, as the majority of workers lack access to job security or social protection. Services risk becoming a low-wage trap despite being the fastest-growing part of the economy,” the NITI Aayog report had said.