Higher levels of manufacturing production have now been recorded for two successive months, with the sector continuing to recover from December's downturn. The upturn in output reflected improved demand from both the domestic and external markets.

The total volume of incoming new work increased for the second month in a row, whereas new export orders expanded for the first time since November 2016. Rates of growth for both production and order books picked up since January, but remained marginal.

Commenting on the Indian Manufacturing PMI survey data, Pollyanna De Lima, Economist at IHS Markit and author of the report, said: "Indian manufacturers benefited from recovering demand and raised production volumes in response to another expansion in inflows of new work. February is the second month in succession in which the health of the sector improved after the demonetisation-related contraction recorded at the end of 2016."

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Sources: Nikkei, IHS Markit