India services PMI rises to one-year high in January: HSBC Markit

Services sector

The survey also showed input and output prices rising at a similar pace to the prior month, though much weaker than a year ago.

Wholesale price inflation eased to a three-year low of 7.18 percent in December, giving the Reserve Bank of India room to cut its key lending rate by 25 basis points to 7.75 percent last week.

"Inflation readings held broadly steady, with fuel, raw material and labour cost pressures still simmering. These numbers underscore the need for the RBI to approach policy easing with caution," said HSBC's Eskesen.

The central bank is expected to cut the repo rate by another 75 basis points to 7 percent by September.

Manufacturing activity grew in January at its slowest pace in three months, a similar survey showed last week.

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