Activity in India’s service sector sunk to a four-year low in July because the Goods and Services Tax derailed the industry, an independent survey revealed on Thursday. The Nikkei India Services PMI Business Activity Index plummeted from an eight-month high of 53.1 in June to 45.9 in July, its lowest since September 2013.

This comes after the manufacturing index had dropped to an eight-year low, going down to 47.9. Experts had attributed this also to the GST. “Most of the contraction was attributed to the implementation of the GST and the confusion it caused,” Pollyanna De Lima, an economist at IHS Markit, had said.

The Purchasing Managers Index is an indicator of market health. A measure above 50 on the index indicates growth, whereas one below the halfway mark denotes contraction.

However, analysts are sure that activity will pick up once the sector gets accustomed to the new tax regime. Confidence in the future of the industry is at an 11-month high, according to The Economic Times.

The Reserve Bank on Wednesday cut its key interest rates by 25 basis points to help improve growth amid stagnant industrial activity and low inflation.