Commenting on the Indian Manufacturing PMI survey data, Pollyanna De Lima, Economist at Markit and author of the report, said: "Growth  of  Indian  manufacturing  production waned in  August  on  the  back  of  softer improvements in both domestic  and  foreign  demand. This led firms to keep payroll numbers unchanged during month.

"A  sharp increase in buying  levels  coupled  with a record  drop  in  stocks  of  finished  goods, however, indicates that output growth will  likely rebound in coming months.

"Meanwhile, falling global commodity prices resulted in an overall reduction in cost burdens. This provided companies with more room for price negotiations and tariffs were lowered on average. As inflation concerns fade and demand growth loses momentum, further accommodative policy should not be discounted."
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