India's business activity in the service sector showed an improvement in August 2020.

The latest PMI data compiled by IHS Markit shows that India's Services Business Activity Index has risen sharply from 34.2 in July to 41.8 in August.

The latest PMI data compiled by IHS Markit shows that India's Services Business Activity Index has risen sharply from 34.2 in July to 41.8 in August.The PMI data released on September 3, 2020, indicates a slower rate of decline in business activity across the service sector during August. The restrictions imposed due to the corona pandemic continued to impact client demands and business operations adversely. New business and output continued to contract at marked rates but comparatively slower than the records seen in April and May. The seasonally adjusted index figure of 41.8 in August is the highest since March but remained below the 50-mark that separates growth from contraction. The fall in output was attributed to the weakening of demand conditions as some businesses remained closed as a result of lockdown restrictions.