Higher demand accelerated India's manufacturing sector growth in September.

Additionally, the IHS Markit India Manufacturing Purchasing Managers' Index (PMI) report released on Thursday cited a renewed expansion in export sales and input stocks as well as an improvement in business confidence during September.

Consequently, reading of the headline seasonally adjusted IHS Markit India Manufacturing PMI showed a rise from 52 in August to 56.8 in September. The latest reading was the highest in over eight-and-a-half years.

"Amid reports of loosened coronavirus disease 2019 (Covid- 19) restrictions and higher demand, Indian manufacturers lifted output for the second straight month in September," the report said.

"The increase was sharp and the third-quickest in the history of the survey. Similarly, there were back-to-back increases in new business inflows." As per the report, the upturn in total sales was supported by a renewed expansion in new export orders, the first since prior to the escalation of the Covid-19 outbreak.

However, despite strong growth of order book volumes, the report pointed out that Indian goods producers signalled another reduction in payroll numbers. "In many cases, this was attributed to efforts to observe social distancing guidelines. Employment has now decreased for six consecutive months," it said..