India’s services sector Purchasing Managers’ Index (PMI) in January was recorded at 51.5, dropping from December’s 55.5 as new businesses grew at a slower rate due to the pandemic, IHS Markit said in its survey. The India Services Business Activity Index dropped because of the slowest growth rate in the current six-month sequence. For the sixth continuous month, the services sector saw an output surge.

The demand was decreased due to the fast spread of the Omicron variant and curfews in many parts of the country. Companies grew worried as growth was harmed by the pandemic, restrictions and inflationary pressures. Business sentiment remained positive but slipped to a six-month low.