What is this circular icon in my Android status bar?

It's a GPS in use icon

From MI forums translated using Google

This icon indicates that the phone is using the GPS signal, and if you are using the phone navigation it is not wrong. Otherwise it is recommended as soon as possible to close the power consumption, so that mobile phone power consumption too fast.

Someone who can read original can point out errors .

Edit From Mi Forums in English

Google's locator icon, which uses wifi, cell and GPS to locate you. To turn off, go to settings>Google>location> untick Access to my location.

It appears when one or more apps [you gave permission to] is asking for your location, hence your phone is transmitting.

OP has provided additional information on getting rid of the icon, which may help others

What solved for me was that Go to Settings > Additional Settings > Privacy > Location > Location access. Then in app permissions for each app I disabled Location. Then restarted the phone. The icon was now gone. Then enabled the location for all apps that previously had it enabled