In a significant uptrend, private sector manufacturing and services activities surged to 37-month high in March on new business orders although job growth remained sluggish, a monthly survey showed today.
The Nikkei India Composite PMI Output Index, which maps both manufacturing and services sectors, climbed from 51.2 in February to 37-month high of 54.3 last month.
A reading above 50 indicates expansion, while one below this level means contraction and the latest data may add to the clamour for RBI to keep the interest rates low.
Growth of manufacturing production gained strength, therefore contributing to a marked expansion in the private sector output.
"March PMI surveys signalled a reassuringly robust end to the financial year for the Indian economy, with sharper increases in new business spurring activity growth in both the manufacturing and service sectors," said Pollyanna De Lima, economist at Markit, which compiles the survey.
The survey noted that despite solid upturns in new business and output, the trend in employment remained subdued.