India’s manufacturing sector growth improved 0.1 percent in October from the 10-month low in September, aided by an increase in new orders, a survey by HSBC showed.

The HSBC manufacturing Purchasing Managers' Index (PMI) -- a composite indicator that gauges the factory output and operating conditions in the manufacturing sector -- posted a 52.9 growth in October, marginally up from 52.8 in September.

The index has remained above 50, indicating growth for over three and half years.

The data showed that the manufacturing activity was boosted by an increase in new orders, indicating a slow recovery. But the frequent power disruptions impacted the factory output.

New orders increased for the 43rd successive month and the new orders sub-index edged up to 54.9 in October from 54.4 registered in September. Exports orders also depicted an upward movement for the second month but in a slower pace than in September.

"Economic activity in the manufacturing sector picked up slightly thanks to firm new orders. However, insufficient power dampened output growth and led to an increase in outstanding work," Leif Eskesen, HSBC chief economist for India and ASEAN, said.

The manufacturing sector recorded its weakest growth rate in nine months in August. Although the growth indicates further improvement in the manufacturing sector, the recovery will be “slow,” HSBC said in the report.

The survey report also showed that the input and output prices recorded its slowest growth in October since Nov. 2010. However, HSBC said it was not an indication of India’s whole sale price inflation which recorded a 10-month high of 7.8 percent in September.

Eskesen said that the price levels would remain “elevated for a while” before cooling down, PTI reported.

The high rate of inflation, which, according to Reserve Bank of India, is much above its comfort levels, has forced the central bank to keep the interest rates unchanged in its latest policy review meeting. There was much pressure on the RBI from both the industry and the government to cut the repo rate.