The good news for the Indian economy continues, with a closely tracked services gauge climbing to a six-month high in January on the back of new business.
The HSBC Business Activity Index, compiled by Markit, rose to 58.0 in January from 54.2 in December. January was the third month the services index has been above the 50-mark that separates growth from contraction.
"Activity in the services sector rebounded in January at the fastest pace since July 2011 led by the financial intermediation and hotels and restaurant sub-sectors, and new business also flowed in at a faster pace," said Leif Eskesen, economist at HSBC.
The new business sub-index surged to 58.2 in January from 55.7 in December. In addition, January's jump in new orders pushed expectations for the future to their highest level since June 2011.
While input prices in India's services sector rose last month at their slowest pace since October companies increased their prices at a faster rate.
India's factory output recorded its biggest monthly rise last month, resulting in the fastest growth in eight months for the manufacturing sector, a separate HSBC-Markit survey showed on Wednesday.