Novel coronavirus drags India’s services sector down
India’s most advanced sector, the service sector that provides job opportunities and heavily contributes to economic growth, declined in March. Such inactivity was brought by insufficiency in export demand and new business due to the coronavirus contagion which had already caused worldwide disruptions.
March records have it that the Nikkei/IHS Markit Services Purchasing Manager’s Index INPMIS=ECI sunk down to a five-month low of 49.3. The index declined after reaching a record-breaking high of 57.5 in February. Currently, it sits below the 50-mark line that divides growh from contraction.
India’s Prime Minister Narendra Modi mandated the people of India to follow quarantine regulations such as staying at home and shutting down businesses which provide non-essential products. The said shutdown is set to run for 21 days starting March 25 to contain further spread of the virus.
This indicated that April’s records will bear worse results as the possibility of global recession is supported by economic paralysis due to the coronavirus contagion.