Services sector activities contract sharply in May; firms cut jobs: Survey
New Delhi: India's service sector activities declined sharply in May as the coronavirus pandemic continued to impair business operations, restrict consumer footfall at shops and resulted in job losses, a monthly survey said on Wednesday.
Reflecting a fall in output at an "extreme rate once again", the IHS Markit India Services Business Activity Index stood at 12.6 in May.
Although the headline figure rose from April's unprecedented low of 5.4, the score remained at a level, which prior to the coronavirus pandemic was unparalleled in over 14 years of data collection and pointed to an extreme drop in services activity across India, the survey noted.
A print above 50 means expansion and a score below that denotes contraction, as per the IHS Markit India Services Purchasing Managers' Index (PMI).
According to the survey, output sank sharply due to extended business shutdowns and very weak demand conditions.
"Service sector activity in India is still effectively on hold, latest PMI data suggest, as output fell at an extreme rate once again during May," Joe Hayes, Economist at IHS Markit said.
Hayes noted that demand for services, both domestically and overseas, continued to plummet in May as clients' businesses remained closed and footfall was drastically below normal levels.
Employment continued to fall in response to weak demand and expectations of further challenging conditions, the survey said.
The Composite PMI Output Index, which measures combined services and manufacturing output, also signalled a severe contraction in private sector business activity in May.
The score, which was at 14.8 compared to 7.2 in April, was consistent with a decline in output which was unparalleled prior to the COVID-19 outbreak, the survey said.
Hayes said that with economic output set to fall enormously in the first half of 2020, it is clear that the recovery to pre-COVID-19 levels of gross domestic product (GDP) is going to be very slow.
India was already in the midst of a protracted economic slowdown before the virus hit due to a festering crisis among shadow lenders and declining consumer demand and private investment. Its GDP grew by 4.2 per cent in 2019-20, the slowest pace in 11 years.
On Monday, Moody's Investors Service downgraded India to the lowest investment grade level and kept it on negative watch, largely because the country faces a prolonged period of slower growth relative to its potential and rising debt levels.
Moody's Investors Service, S&P Global Ratings and Fitch Ratings are predicting the first contraction in GDP for India in over four decades and a fiscal deficit blowout following COVID-19 disruptions.
Meanwhile, on Tuesday, Prime Minister Narendra Modi asserted that India will tide over the coronavirus pandemic and will get back on track with the government's decisive policies.
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Govt launches Haj Suvidha App 2.0 for ease of pilgrims
New Delhi, Nov 23: The Minority Affairs Ministry on Saturday launched the Haj Suvidha App 2.0 with the new version introducing key features such as air travel details, a navigation system with Mina maps, and medical history and health advisories for Indian pilgrims going on Haj.
The application was launched by Minority Affairs Minister Kiren Rijiju after he inaugurated the Conference of Chairpersons of State and UT Haj Committees in the presence of Minister of State for Minority Affairs, George Kurian and Chairman of the Haj Committee of India Abdullahkutti, among others.
In his address, Rijiju noted that the Haj pilgrimage is the largest logistical operation undertaken annually by the government of India beyond its borders.
He emphasised that Haj has long been a cornerstone of the strong bilateral relationship between India and the Kingdom of Saudi Arabia.
Rijiju highlighted several significant reforms aimed at improving the pilgrimage experience, including the removal of the discretionary quota, the integration of technology through the Haj Suvidha App, and the provision of facilities for female pilgrims without Mehram.
Kurian spoke about the new measures being implemented for Haj 2025, designed to enhance the comfort and convenience of the Indian pilgrims.
Among the key initiatives, he mentioned the procurement of modern buildings with lifts not only in Aziziya but also in nearby areas close to the Haram.
Additionally, the latest model buses will be introduced for travel between Makkah, Madinah, and within the Mashaer region.
The conference, organised by the Haj Committee of India under the Ministry of Minority Affairs, also marked the launch of the Haj Suvidha App 2.0 by Rijiju.
Building on the success of the Haj Suvidha App 1.0 in 2024, the new version introduces key features such as the selection process, boarding pass and air travel details, a navigation system with Mina maps, and medical history and health advisories for Indian pilgrims.
The conference included discussions on stakeholder feedback, suggestions and preparations.
