The HSBC/Markit Purchasing Managers Index for the services industry inched up to 47.2 in November from 47.1 in October, the fifth sub-50.0 reading and indicated an output contraction across the Indian service economy.
An index value of below 50 indicates contraction.
Business activity fell in five of the six broad sectors covered by the survey, the only exception being post and telecommunication, HSBC said, adding that hotels and restaurants registered the third successive month of drop in activity.
"Service sector activity remains subdued, but would at least appear to be stabilising," HSBC Chief Economist for India and ASEAN Leif Eskesen said.
Though the service sector output registered fifth consecutive monthly drop in new work, the overall rate of contraction was moderate and little-changed from that seen in October.
Earlier this week, the HSBC/Markit manufacturing PMI showed that India's manufacturing
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