India's manufacturing activity expanded at the fastest pace in four months in July, survey results from Markit showed Monday.
The Nikkei Purchasing Managers' Index edged up to 51.8 from 51.7 in June. A reading above 50 indicates expansion.
Supported by greater demand from both the domestic and external markets, total new business climbed at the fastest pace since March. Indian manufacturers stepped up production, with July's upturn being the most pronounced since March.
Nonetheless, only 1 percent of surveyed companies took on additional workers in July.
On the price front, July saw input costs rise at the slowest pace in five months. Although charge inflation accelerated, the rate of increase was only slight and remained below its long-run average.
"With inflation rates remaining lower than their respective long-run averages, it wouldn't be surprising to see the RBI loosening monetary policy at its August meeting in an effort to encourage investment," Pollyanna De Lima, an economist at Markit and author of the report.
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