The IHS Markit India Manufacturing PMI rose from 52.7 in December to 55.3 in January, its highest level in just under eight years
In response to the jump in sales, factories hired new workers at the fastest rate in more than seven years
But weak market conditions keep firms spooked and business optimism low
Solid growth in demand was despite output prices rising at the fastest rate in nearly three years
The dominant sector of the economy had suffered two straight-months of contraction since September
The downturn in overall business activity and demand suggests the Reserve Bank of India might need to ease policy again, a survey showed
On the prices front, input cost inflation moderated to one of the lowest rates seen in over a decade
The survey noted that business confidence sank to one of the lowest levels seen in over two-and-a-half years
Overall demand only rose marginally in September, hurt by almost no growth in exports, and firms barely increased headcount last month, the survey showed
This is the 25th consecutive month that the manufacturing PMI has remained above the 50-point mark
However, it has remained above the 50-mark separating growth from contraction for more than two years
The manufacturing sector activities improved in July as new work orders and output strengthened from the previous month
Overseas demand was hampered by slower global trade flows, underscoring the brodening impact of international tariff tensions, especially led by the bruising Sino-U.S. row
This is the 23rd consecutive month that the manufacturing PMI has remained above the 50-point mark
Easing price pressure is likely to keep overall retail inflation in check
The survey also showed optimism amongst factories rose to its highest since August, supported by government policies announced ahead of this year's general election
This is the 19th consecutive month that the manufacturing PMI remained above the 50-point mark
Although new orders and output expanded at a slower rate last month, both have remained well into expansion territory for more than a year, supported by weaker inflationary pressures
However, optimism about future output slipped to the lowest since June 2018, the survey showed
PMI went up from 51.2 points in May to 53.1 in June