India's manufacturing activity expanded in December, driven by a spike in factory output and new orders from domestic and international firms.

The HSBC Markit India Manufacturing PMI expanded to 54.2 compared with the prior month's reading of 51.0 in November, which is the biggest monthly rise since April, 2009.

On the other hand, the new orders' index, that is a reliable gauge of future output, jumped to 57.9 from 52.8 in November, which is the biggest increase in two years, also new orders from overseas clients grew at a faster pace than last month, the second consecutive expansion after shrinking for four months.