The manufacturing purchasing managers' index touched a 22-month high in October on the back of strong growth in new orders, output, and the stocks of purchasing.
The October Nikkei India Manufacturing Purchasing Managers' Index rose from 52.1 in September to 54.4 in October, "indicative of a robust improvement in manufacturing business conditions that was in line with the long-run series average," Markit Economics said.
In October, "output increased for the tenth straight month and at the quickest rate in nearly four years. The amount of new work received by manufacturers also grew markedly, with anecdotal evidence linking the latest rise to improved underlying demand," the statement said.
While new orders from overseas also contributed to the total new work, the rate of growth in new business from abroad was at a three-month low, the statement said.
Despite of robust growth in new work, employment was left unchanged by businesses. The average input cost also rose markedly in the month, with the rate of inflation quickening at the fastest pace since August 2014, it said.