New Delhi: India's manufacturing sector continued to grow in March, with the S&P Global Purchasing Managers' Index (PMI) rising to 56.4, up from February's 55.3.
This marks the 21st consecutive month with a 50-plus PMI reading, indicating expansion in activity.
The PMI figure is at a three-month high due to the strong growth of factory orders and production.
The increase in manufacturing activity will be a positive sign for policymakers who have seen the sector take a backseat in recent months while services activity has hit new highs.
The rise in new export orders was subdued, but foreign demand for Indian goods increased. Input cost inflation eased to its second-lowest level in two-and-a-half years, while selling prices increased at a rate similar to February.
Despite the good news, India continues to battle high retail inflation levels, with the CPI inflation at 6.44 percent in February. The Reserve Bank of India's Monetary Policy Committee is expected to announce another repo rate hike in its interest rate decision on April 6.
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