In March of the current fiscal year, India's business activity grew at its quickest pace in eight months, continuing its trajectory as the fastest-growing major economy.

This month, the final reading of February's HSBC flash India Composite Purchasing Managers' Index (PMI), which is calculated by S&P Global, increased to 61.3 from 60.6.

That brought the current run of increasing activity to 32 months. Every month, the 50-mark distinguishes between expansion and contraction.

"The composite output index rose quickly, led by the strongest manufacturing output in nearly three-and-a-half years," HSBC chief India economist Pranjul Bhandari stated. "New orders rose at a faster pace than in the previous month, and within that both domestic and export orders showed improved vigor."

The manufacturing sector, which has been one of the main engines of the economy for the last few quarters, led growth. From 56.9 last month, the indicator measuring manufacturing activity increased to 59.2, its highest level since February 2008.

The third largest economy in Asia continues to have a robust demand for manufacturing products, with new orders expanding at their quickest rate in more than three years. Services activity, meanwhile, continued to be strong even though the indicator marginally decreased from 60.6 in February to 60.3 in March.