India's service sector activity grew at its fastest pace in October from a strong growth in new businesses. The Nikkei/IHS Markit Services Purchasing Managers' Index was at 52.2 in the previous month from 50.9 in September (the lowest in four months), marking the fastest growth since July.

According to the private survey, the sector has been holding above the 50-mark for the fifth straight month. The 50-mark is what separates growth from contraction. Improved order flow accompanied by a slower increase in input costs and also in selling prices, helped increase overall activity, encouraging firms to accelerate hiring to its fastest pace in six months.

"Cost pressures faded in October. At the same time, a robust expansion in workforces one of the best seen for over seven-and-a-half years added to firms' expenses," said Pollyanna De Lima, a principal economist with IHS Markit.

Reduced cost pressure and a decline in oil prices may have also helped with the inflation, as the Reserve Bank of India kept interest rates unchanged last month.

Additionally, the Nikkei India Composite PMI Output Index, which studies the activities in the manufacturing as well as services sector, improved to 53 in October from 51.6 in the preceding month. The results highlighted the strongest expansion in the private sector since July.

The survey also noted that the business sentiment remained positive, but was hampered by political uncertainty.