India's services sector, the primary engine of the country's economic expansion, slowed to a 17-month low in June.

The Purchasing Managers' Index (PMI) for services dropped to 57.8, down from the previous month's reading, signaling a notable deceleration in activity levels.

Service providers reported that existing payroll numbers were sufficient for current operational requirements, leading to a broad pause in hiring.

The softening was accompanied by a standstill in recruitment.

Service providers reported that existing payroll numbers were sufficient for current operational requirements, leading to a broad pause in hiring.

This labor market cooling suggests that the sector's momentum is fading even as it remains in expansionary territory above the 50.0 threshold.

The data highlights a diverging global growth picture.