As per a private survey, lockdown has led India's service sector to a virtual collapse in April month with a severe spike in layoffs and recessionary fears looming.
The Nikkei/IHS Markit Services Purchasing Managers' Index nosedived to levels of 5.4 during the period under review to levels of 49.3 in March. This is the record contraction in service activity since the survey has been conducted 14 years ago.
This has been the most extreme outcome amongst major economies worldwide.
"The extreme slide in the headline index, which fell by over 40 points, shows us that the strict lockdown measures have led to the sector essentially grinding to a complete standstill," Joe Hayes, an economist at IHS Markit, said in a release.
Furthermore the eye-popping decline in activity points to the widespread uncertainty and havoc created due to the pandemic with many fearing worst recession since the 1930s.
Other key metrics also recorded a steep fall with demand for services dipping to an unprecedented 0.0 level while the total demand gauge also recorded to historic lows. At the same time employers cut jobs at the fastest rate.
On Monday, manufacturing PMI released and this takes the composite PMI for April to levels of 7.2 as against 50.6 levels reported in the previous month.