Comment: Commenting on the Indian Manufacturing PMI survey data, Pollyanna De Lima, Economist at Markit and author of the report, said: "PMI data suggest we should expect another quarter of robust economic growth in the last quarter of the 2015-16 financial year. The Manufacturing PMI ticked higher in March, providing welcome reassurance that the sector has moved farther away from the flood-related contraction seen in December. Despite gathering momentum, growth of production and new orders still remained below trend rates however. On the export front, it was encouraging to see a sustained increase in new export orders, often attributed to the depreciation of the rupee."

"In addition to the underlying growth picture, a lot of focus remains on the trend in prices. On this front, March's survey suggests that inflationary pressures in manufacturing are on the upside, with cost burdens rising at the quickest pace in three months and output charge inflation reaching a 16-month high. Falls in commodity and oil prices were offset by the weaker rupee making imported raw materials costlier. This build-up in inflationary pressures may lead the Reserve Bank of India to hold off from cutting rates, especially as solid growth was seen."
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