TOKYO -- The Nikkei India services Purchasing Managers' Index, or PMI, rebounded to 52.6 in June from 49.6 in May, marking the sharpest rate of expansion in a year.
A reading above 50 indicates economic expansion, while a reading below 50 points toward contraction.
Input cost inflation remained solid, but services providers were unable to fully pass on higher input costs to price-sensitive consumers.
"The service economy returned to expansion territory in June. Encouragingly, the latest performance was the strongest seen in a year," said Aashna Dodhia, economist at IHS Markit, which compiles the survey.
"However, overall input costs rose at the strongest rate since July 2014, and amid a weak rupee and higher oil prices, inflation may remain elevated. Given these circumstances, the chances of further monetary policy tightening have heightened," Dodhia added.
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