India’s manufacturing grows at fastest clip in six months: survey

India's manufacturing sector growth improved in December to its fastest pace in six months, driven by a strong improvement in new orders, an HSBC survey found.

The HSBC India Manufacturing Purchasing Managers' Index (PMI) – a measure of factory production - stood at 54.7 in December, up from 53.7 in November, indicating a further improvement in the health of the Indian manufacturing sector.

Output at manufacturing companies rose during the month, HSBC said, adding that almost one-third of those surveyed indicated higher production and only 18 per cent noted a decline for the period.

"The overall rate of growth was sharp and the fastest in six months in December," HSBC said.

The index has remained above the 50-mark, below which indicates growth, for more than three years now.

The survey's findings are based on data from more than 500 manufacturers. They come after India's economic growth fell to 5.3 per cent in the July-September quarter, extending a slowdown since the start of the year.