Despite the growth in the service sector, the Corona is sitting still
The result of the increase in production costs, the survey concluded
New Delhi : Despite an increase in India’s services sector in March, the corona virus is again at risk. There has also been an increase in production costs. Both are hurting the Indian service sector, a monthly survey said today.
The Seasonally-Adjusted India Services Business Activity Index fell to 54.6 in March from 55.3 in February. The increase in production is an indication of growth for the sixth consecutive month.
A review of the PMI indicates an increase above 50 and a decrease below 50.
Demands seemed to have increased due to the elections. But the re-emergence of the Covid-19 virus crisis could hit the service sector with new restrictions and some layoffs, said Poliana Delima, associate director of economics, IHS Markit.
Lima further warned that restrictions and layoffs could cause major financial losses in April if the number of corona patients increases anew.
In addition, overseas demand for Indian services continued to decline, with new orders from abroad falling sharply for the 13th consecutive month, the survey said.
Respondents to the survey said there was a slight increase in production costs, the highest increase since February. Therefore, rising prices are affecting the sale of goods. So many companies are reluctant to change prices due to competition pressures.
Tags: Business Activity Index, Corona Virus, Seasonally-Adjusted India Services, service sector