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India's services sector strengthened in August because of resilient demand and a continued rise in new business, while employment growth accelerated to a 15-month high, according to the HSBC India Services PMI data released on Thursday. 

The seasonally adjusted HSBC India Services PMI Business Activity Index rose to 54.1 in August from 53.3 in July which showed a stronger pace of expansion in the sector.

In addition, service providers reported sustained demand conditions and higher new business inflows with marketing initiatives and stronger customer demand supporting activity during the month.

International demand also remained supportive with new export orders rising solidly and at a pace broadly similar to July. 

Firms reported stronger business from customers in markets including Australia, Brazil, Canada, Japan, Malaysia, Singapore, Sri Lanka and the UAE, the HSBC data showed.

Apart from that, employment across India's services economy increased at a marked pace with around 11 per cent of survey respondents reporting higher staffing levels, while the rate of job creation was the strongest in 15 months with firms citing the need to support customer service, sales and digital operations.

Pranjul Bhandari, chief India economist at HSBC said services activity expanded faster in August, supported by stronger output and new business.

"Employment increased at a marked rate, with job creation reaching a 15-month high," Bhandari said and added that price pressures picked up only modestly.

Additionally, the HSBC India Composite PMI Output Index stood at 54.3 in August, unchanged from July, as faster growth in services offset a slowdown in manufacturing.

HSBC’s data also showed aggregate employment rising at its fastest pace in 14 months, with robust hiring in services more than offsetting a reduction in manufacturing employment.

Aggregate new order volumes also increased at a faster pace, while composite input cost inflation eased to a seven-month low.