Mumbai, Dec 1 (IANS): India's manufacturing sector expanded exponentially in November due to accelerated increases in output and new orders, a key macro-economic data showed on Friday.

The Nikkei India Manufacturing Purchasing Managers Index (PMI), a composite indicator of manufacturing performance, increased to 52.6 in November from 50.3 reported for October.

An index reading of above 50 indicates an overall increase in economic activity and below 50 an overall decrease.

According to the data furnished by IHS Markit, the manufacturing sector recorded its strongest improvement in business conditions for the last 13 months.

"A combination of higher order book volumes and a decrease in GST rates reportedly contributed to greater production. That said, the rate of growth remained weaker than the trend seen since the inception of the survey in March 2005," the data report said.

Commenting on the Indian Manufacturing PMI survey data, Aashna Dodhia, Economist at IHS Markit and the author of the report, said that manufacturing economy advanced on its path to recovery as disruptions from the recent tax reform (GST) continued to diminish.

"Growth in output and new orders picked up to the fastest since October 2016, reportedly supported by reductions in GST rates and stronger underlying demand conditions," Dodhia said.

"Nevertheless, the headline PMI remained below the average seen since the inception of the survey in March 2005."

On the employment front, the Dodhia pointed out that stronger factory production levels translated into the fastest rate of employment creation since September 2012.

"Meanwhile, export growth rose for the first time in three months as overseas demand for Indian goods improved," Dodhia said.