Following a slump in March, Indian manufacturing picked up pace growing at its fastest rate for three months in April. Analysts had attributed the earlier slow down in manufacturing to the rate rises from the Reserve Bank of India.

Moreover, manufacturing was buoyed by a decline in the input price index, which fell to 52.7 in April from 53.9 in March.

According to Abheek Barua, chief economist, India, at ABN Amro Bank, the reversal in the PMI was encouraging, especially as it was accompanied by a fall in input price inflation.