On Tuesday, a private business survey showed that India's activity in the services sector contracted for the second straight month in October on muted demand.
Despite an increase in the Nikkei/IHS Markit Services Purchasing Managers' Index (PMI) to 49.2 in October from 48.7 in the previous month, the index has remained below the 50-mark threshold for the second consecutive time.
The 50-mark separately the index from contraction and expansion in growth.
Two consecutive months of contraction was previously seen in August 2017, immediately following the implementation of GST (Goods and Services Tax) regime.
On 1 November, the manufacturing PMI was reported at 50.6 for the month of October, a two-year low for growth in manufacturing activity in the country.
The composite index, that considers activity in manufacturing as well as services, for October, fell to its more than two-year low of 49.6.
"It's somewhat worrying to see the Indian service sector stuck in contraction, as firms react to muted demand by lowering business activity," said Pollyanna De Lima, principal economist at IHS Markit, in a press release.
Future expectations have also seen a downward revision for the sector, as per the survey.