India's private sector contracted marginally in February, as the fall in service sector activity outweighed an upturn in manufacturing production, survey data from IHS Markit showed Monday.
The seasonally adjusted Nikkei India composite output index dropped to 49.7 in February from 52.5 in January.
Any reading below 50 suggests contraction, while a score above 50 indicates expansion in the sector.
Business conditions in India's services sector deteriorated modestly in February. The headline services Purchasing Managers' Index fell from 51.7 to 47.8.
New orders received by Indian services firms declined at the fastest rate since August last year. Meanwhile, manufacturing orders grew for the fourth successive month.
Despite unfavorable demand conditions, service providers raised their staffing levels in February and the job creation accelerated to the joint-strongest since June 2011.
On the price front, input price inflation faced by services firms quickened to the strongest since November. As a result, selling prices grew at the fastest pace since July.
However, services companies remained optimistic towards the 12-month outlook for output.