Output in the Indian manufacturing sector expanded moderately in October, but persistent power shortages weighed on production. New orders increased, as has been the case since April 2009. The pace of expansion was marked and accelerated from September. According to respondents, order book volumes rose in tandem with stronger demand, increased marketing and maintained product quality.

"Economic activity in the manufacturing sector picked up slightly thanks to firm new orders. However, insufficient power dampened output growth and led to an increase in outstanding work. Employment conditions remain strong, although the pace of hiring slowed a bit. Inflation eased notably with both output and input prices rising at a slower pace. Looking ahead, the recovery in manufacturing growth is likely to be slow and inflation is likely to stay elevated for a while still."

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