Rising from November's five-month low of 50.2 to 51.6 in December,the seasonally adjusted
Nikkei India Composite PMI Output Index was indicative of a rebound in growth of private sector activity.
Whereas manufacturing production decreased for the first time since October 2013, services activity increased at an accelerated pace.
Nikkei Services Business Activity Index-which is based on a single question asking respondents to report on the actual change in output at their companies compared with one month ago-was indicative of a solid expansion in output across the sector.
Sub-sector data indicated that output rose in four of the six broad areas of the service economy, the exceptions being Hotels & Restaurants and Transport & Storage. The best performing categories in December were ‘Other Services' and Financial Intermediation.
Commenting on the Indian Services PMI survey data, Pollyanna De Lima, economist at Markit, which compiles the survey, said: "The Indian private sector returned to expansion territory at the end of 2015, eking out modest output growth in December. As stronger rise in new business and an improvement in year-ahead expectations at service providers are positive developments, but the overall health of the economy remains fragile amid a weak
Firms' reluctance to hire was evident throughout 2015, with meaningful job creation last recorded in 2013. This suggests that conditions are likely to remain challenging in the near-term," De Lima said.