The seasonally adjusted Nikkei India Composite PMI Output Index -- that maps both the manufacturing and services sectors -- fell from 52.6 in August to 51.5 in September, highlighting the weakest rate of expansion in the current period of growth.
Meanwhile, the Nikkei Business Activity Index, also fell from 51.8 in August to 51.3 in September as 'tough economic conditions weighed on growth', the survey showed. A reading below 50 means contraction in the sector.
"India's economy lost steam in September with growth fading across both the manufacturing and service sectors. The sluggish increase in private sector output mirrored softer demand conditions across the country, while growth of global demand for Indian goods also moderated," Pollyanna De Lima Economist at Markit, which compiles the survey said.

Meanwhile, according to an earlier Nikkei survey, factory output for September had dropped to a seven-month low. On the inflation front, Nikkei said that price pressures 'dissipated' in September.
"Lower commodity prices coupled with falling petrol costs resulted in an overall drop in average input prices. On the back of this, businesses lowered their tariffs," Lima added.
Meanwhile, as a consequence of the slowdown, private sector employment was broadly unchanged as service providers maintained employment levels steady in September.
"Looking ahead, service providers expect further setbacks, as highlighted by the Future Output Index sliding to its lowest mark in the history of the series," Lima added.


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