The HSBC India Composite Output Index, which maps both services and manufacturing, increased from 48.9 in March to 49.5 in April, but remained below the crucial 50 mark which indicates contraction for the second successive month.
Meanwhile, the HSBC services business activity index inched up from 47.5 in March to 48.5 in April, but this index too remained below the 50 mark.
"While the Business Activity Index improved, it remained below the water line. This points to still subdued service sector activity," HSBC Chief Economist for India & ASEAN Leif Eskesen said.
According to survey participants, a difficult economic climate, combined with the elections and a further drop in new orders had all contributed to
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