TOKYO -- Indian manufacturing sector saw its strongest improvement in business conditions in February since December 2017, as accelerated increase in sales which fuelled growth of output and employment.

The Nikkei India Manufacturing Purchasing Managers Index, or PMI, was up to 54.3 in February from 53.9 in January. Readings above 50 point to expansion, while those below 50 indicate contraction. The latest figure was stronger than seen on average over the 14-year survey history.

New orders were supported by international sources, increasing manufacturing output at the quickest rate since December 2017, bolstered by inflows of new business, technological progress and supportive government policies. Pre-production inventories increased, as well as job creation was sustained.

"The survey results suggest that manufacturing will likely provide a stronger contribution to overall economic growth in the final quarter, provided that March's figures stay on this favourable path," said Pollyanna De Lima, Principal Economist at IHS Markit which compiles the survey.

For FY19, IHS Markit has revised higher its GDP growth forecast, from 7.0% to 7.1%, "amid the announcement of fiscal stimulus for the new interim budget and the policy rate cut announced in February," she added.

For more information, visit here.