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India Manufacturing Sector Growth Improves In November

India's manufacturing sector grew further in November but the upturn remained subdued compared to early 2009, survey results from IHS Markit showed on Monday.

The headline IHS Markit manufacturing Purchasing Managers' Index, or PMI, increased to 51.2 in November from 50.6 in October. Any reading above 50 indicates expansion in the sector.

Total sales rose for the twenty-fifth month in a row in November, however, the upturn was among the weakest over this sequence. The increase in exports was the slowest over the past year-and-a-half.

Employment declined for the first time in twenty months in November.

The survey showed that rates of contraction in both input buying and inventories were marginal in November.

On the price front, the survey showed that both input costs and output charges in November increased marginally.

"Some level of uncertainty regarding the economy was evident by a subdued degree of business optimism," Pollyanna de Lima, a principal economist at IHS Markit, said.

"PMI data continued to show a lack of inflationary pressures in the sector which, combined with slow economic growth, suggests that the RBI will likely extend its accommodative policy stance and further reduce the benchmark interest rate during December."

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