Activity in India's service sector accelerated in the month of February aiding from an increase in domestic new business, a private survey said on Tuesday.

The Nikkei/IHS Markit Services Purchasing Managers' Index (PMI) rose to 52.5 in February from 52.2 in January. The monthly index has stayed above the 50-mark for the ninth straight month now.

According to the PMI survey, the increase in new work and business activity in February supported one of the best upturns in jobs for eight years.

However, the manufacturing PMI has been outperforming the service sector for the seventh straight month, widening the output performance in February to the most in a year. This is a cause of concern as the service sector accounts for 35 percent of the total employment and 60 percent of the country's gross domestic product (GDP).

Manufacturing PMI, as reported on March 1, rose to a 14-month high of 54.3 in February from 53.9 in January.

The composite PMI, (when both the service and manufacturing sectors are taken together) increased to a three-month high of 53.8 from January's 53.6.

A sub-index that track new business orders in the services sector has shown its expansion for a year while new export orders contracted mildly in February. Firms have maintained a strong hiring pace.