According to the latest data released by HSBC, India's headline HSBC Business Activity Index rose to 52.8 in April, compared to 52.3 in March indicating a lower trend rate of expansion of services output.

The HSBC Markit Purchasing Manager's Index (PMI), which is a widely followed indicator of manufacturing activity, showed a slower expansion of factory output in April in the country. The HSBC Composite Output Index that includes both manufacturing and service, remained at 53.8 in April.

The service providers in the country employed more income in the month and extended the period of growth in the economy. There was also a growth in the new orders and manufacturers too saw growth with new orders in the month. The index rose due to an increase in factory output and new orders from domestic and international firms.

Experts say that a reading above the mark of 50 indicates expansion of the industry while that below 50 shows contraction. The PMI for India came close to contraction in September when it fell to 50.4.

Leif Eskesen, chief economist for India & ASEAN at HSBC said, "Service sector activity accelerated slightly in April on the back of a rise in new business, which supported a marginal pick-up in sequential employment growth."

Reserve Bank of India (RBI) governor D Subbarao has already indicated that the central bank is considering a reversal of the monetary policy as the inflation is falling and the high interest rates have affected economic growth in the country.