Business activity across India's private sector expanded in July, with the HSBC India Composite Purchasing Managers' Index (PMI) falling to 54.3 from 57.1 in the previous month, according to data compiled by S&P Global and released on Wednesday.

The reading matched the flash estimate, according to Trading Economics, remaining above the 50.0 mark that separates expansion from contraction but recording the softest growth in 53 months.

The monthly momentum was driven by sustained increases in new orders and output across the private sector, although at a softer rate.

The manufacturing PMI, released earlier, eased to 53.5 from 54.2 the previous month, while the services PMI declined to 53.3 from 57.4 in June.