Indian manufacturing output increased during January on the back of rising order books. Greater production needs encouraged companies to purchase more inputs, but failed to generate jobs in the sector.

On the price front, input cost inflation climbed to its highest mark since August 2014, while output charges were raised for the eleventh successive month.

Having deteriorated in December for the first time in one year, the health of India's manufacturing economy improved in the opening month of 2017.

The headline Nikkei India Manufacturing Purchasing Managers' Index (PMI) was up from 49.6 to 50.4 in January. The main factors contributing to the above 50.0 PMI reading were growth of both new orders and output.

(Continued on the next page)