New Delhi, March 5 -- The HSBC India Services PMI rose to 59.0 in February, up from January's 26-month low of 56.5, indicating a sharp expansion in business activity.

India's services sector expanded at a stronger pace in February, driven by rising domestic and international demand, leading to increased new orders, higher employment, and robust business activity. However, while cost pressures persisted, inflation rates eased to a four-month low, according to HSBC India Services PMI.

This growth was well above the long-run average, supported by higher productivity, strong demand, and an increase in new business orders.

New orders in February grew at a faster pace as compared to January, with improved international demand. Service provid...