Registering above the crucial 50.0 threshold for the third consecutive month in March, the seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) rose from 51.1 in February to an eight-month high of 52.4 in March.
"India's manufacturing upturn gathered momentum in March, with stronger inflows of new work leading firms to scale up output.
On the price front, cost inflation accelerated, while charges were raised to the greatest extent since November 2014.
"Registering above the crucial 50.0 threshold for the third consecutive month in March, the seasonally adjusted Nikkei
India Manufacturing Purchasing Managers' Index (PMI)-a composite single - figure indicator of manufacturing performance - was indicative of another improvement in business conditions across the sector," a release by Markit on behalf of Nikkei India has stated.
The latest expansion was widespread across the three monitored sub-sectors, with consumer goods posting the quickest rate of increase.
March data highlighted a third successive monthly rise in order books, which panellists associated with improved demand from both domestic and external clients. New business inflows increased at a solid pace and one that was the most pronounced since last July. Growth of new export orders was sustained, but the rate of expansion remained slight. Buying levels increased further in March, which survey participants linked to stock-building initiatives.