Factory activity in India expanded at the fastest pace in five years in December, according to the Nikkei India Manufacturing Purchasing Managers' Index, or PMI, which rose to a five year high of 54.7 in the last month of the previous year from 52.6 in November of the same year, Bloomberg has reported.
According to the report, a reading above 50 points towards economic expansion, while a reading below 50 indicates contraction.
"India's goods-producing economy advanced on its recovery path, with operating conditions improving at the strongest pace since December 2012," said Aashna Dodhia, an economist at IHS Markit, which compiles the survey.
"Strong business performance was underpinned by the fastest expansions in output and new orders since December 2012 and October 2016,” she said.
"However, the sector continues to face some turbulence as delayed customer payments contributed to greater volumes of outstanding work... Challenges remain as the economy adjusts to recent shocks, but the overall upturn was robust compared to the trend observed for the survey history," Dodhia added.
According to a report in Reuters, rate of job creation in India rose to its highest since August 2012 in December. The report also says that domestic and foreign demand expanded at the highest pace since October and June 2016 respectively.
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