and for three years the inflation rate has stayed well above the Reserve Bank of India's commonly perceived comfort zone of around 5 percent.
Citing price pressures the RBI has held the key repo rate on hold since April, even as many other central banks around the world have cut rates.
The protracted slowdown has led to a clamour from markets for a rate cut, but HSBC's Eskesen said the PMIs suggest the RBI should continue to hold fire.
The Indian economy grew just 5.3 percent from a year earlier in the quarter to September, government data showed last week, extending its slowdown that began at the start of this year. It is now headed for its weakest full year growth in a decade.
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Indian services growth slowed to 13 month low in Nov: HSBC
(PTI) India's services sector growth declined in November, the lowest pace in 13 months, as new business grew at a slower clip, says an HSBC survey.
The HSBC's Services Purchasing Managers Index (PMI) for November declined to 52.1 in November, down from 53.8 in the previous month, signalling the slowest rate of expansion in the current 13-month sequence.
The index has witnessed significant decline in the last two months after registering the fastest pace of growth in seven months in September. The index has, however, managed to be above the 50-mark which indicates expansion since November 2011.
"Business activity expanded at a slower pace in November and new business also grew at a slower clip, which in both cases may partly reflect the fewer working days due to Diwali," HSBC Chief Economist for India and ASEAN Leif Eskesen said.
However, service providers remain optimistic about the short-term business outlook. Activity in the upcoming year is forecast to increase in line with maintained brand reputation, stronger marketing and anticipated rise in demand.
"The forward-looking business expectation index improved notably, with some respondents reporting of planned business expansion," Eskesen said.
Earlier, an HSBC survey had shown that India's manufacturing sector growth improved in November, registering the fastest pace in five months, driven by a strong pick up