In June, India's manufacturing sector expanded significantly, becoming the second-fastest in the year, albeit at a slightly slower pace than in May.

The latest Manufacturing Purchasing Managers' Index (PMI) data from S&P Global revealed a reading of 57.8 in June, a slight decrease from the previous month's figure of 58.7. This result was slightly lower than the 58.0 predicted.

Notably, the PMI has remained above the critical 50-point mark for two years in a row, indicating that the sector is expanding rather than contracting. This sustained growth is a good sign for India's manufacturing industry, demonstrating resilience and strength in the face of higher inflationary pressures.

"June's PMI results again showed robust demand for Indian-made products, both in the domestic and international markets," Reuters quoted Pollyanna De Lima, economics associate director at S&P Global Market Intelligence, as saying.

"Positive client interest continued to support the manufacturing industry, driving growth of output, employment, quantities of purchases and input stocks."

New orders and output rose sharply despite the sub-indexes easing moderately from May, driven by both domestic and international demand. Foreign demand grew for the 15th straight month.

Strong underlying demand also stoked business confidence and optimism around future business activity rose to its highest this year.