Strengthening demand conditions amid easing of Covid-19 restrictions have boosted the recovery of India's manufacturing industry in September.

Accordingly, the headline seasonally-adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) rose to 53.7 (index reading) in September as against a reading of 52.3 in August.

The PMI ranges between 0 and 100, with a reading above 50 indicating an overall increase compared to the previous month.

"With sales rising at a stronger rate, firms scaled up production and purchased additional inputs. There was also a faster upturn in international sales and an improvement in business confidence," said the PMI report.

According to the report, for the second quarter of fiscal FY22, the PMI averaged 53.8 from 51.5 in the opening quarter.

"Consumer goods was the brightest spot in September, posting the highest PMI reading of the three monitored market groups amid substantial accelerations in growth of new orders and output," it said.

On the price front, the PMI report indicated an intensified trend in September due to lingering shortages of raw materials as well as higher fuel and transportation costs.