Business activity in India's services sector continued to be marred by the coronavirus pandemic and reimposition of restrictions across states. Latest data from research firm IHS Markit showed that India's services Purchasing Managers' Index (PMI) fell to 41.2 in June 2021 from 46.4 in May. Further international demand for Indian services deteriorated further in June, with new export orders falling for the sixteenth consecutive month. Services sector contributes around 55% to India's GDP growth, so a recovery in the services sector bodes well for India's overall economic growth. "If that materialises, the services sector would once again be the most vulnerable," he said.

Source: Mint July 05, 2021 06:33 UTC