The Nikkei India Services Purchasing Managers’ Index (PMI), which tracks services sector output on a monthly basis, rose from 50.3 in February to 51.5 in March. A reading of 50 separates growth from contraction and the index has reached its highest level since October.

The survey also showed that the inflationary pressure eased in the sector as input prices rose at a slower pace and the corresponding easing of output prices helped boost demand.