India services PMI falls to 13-month low in November, economy hit: HSBC
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However, service providers remain optimistic about the short-term business outlook. Activity in the upcoming year is forecast to increase in line with maintained brand reputation, stronger marketing and anticipated rise in demand.
"The forward-looking business expectation index improved notably, with some respondents reporting of planned business expansion," Eskesen said.
Earlier, an HSBC survey had shown that India's manufacturing sector growth improved in November, registering the fastest pace in five months, driven by a strong pick up in new orders and improved purchasing activity.
Accordingly, the HSBC India Composite Output Index – which maps both the manufacturing and services index – stood at 53.2 in November, slightly down from 53.5 in October, the slowest rate of expansion in 12 months.
On prices, the report said there was persistent inflationary pressure in the Indian private sector as both input and output prices increased.
"Despite the reported moderation in growth, inflation held steady due to firm raw material, fuel and labour cost pressures," Eskesen said.
He further noted that "combined with the stronger growth and inflation readings from the manufacturing PMI, these numbers suggest that the RBI should be inclined to continue to hold fire (keep interest rates unchanged)".
The RBI is scheduled to announce its mid-quarter monetary policy review on December 18. Reserve Bank governor D Subbarao has resisted a widespread call for the growth-propping rate cuts for some time now, citing the elevated inflation.