India's manufacturing-sector expansion was sustained in February, but slowed from January, and the pace of growth declined to a 14-month low, reported S&P Global on Monday.

India's seasonally adjusted manufacturing purchasing managers index (PMI) registered at 56.3 in February, down from 57.7 in January, but still striking well above the 50-marker that separates growth from expansion, said S&P Global, citing its monthly PMI survey.

Still, India's manufacturing PMI has remained in expansion territory for 44 straight months, with February "indicative of a further robust improvement in the health of the sector," added S&P Global.

Enjoying strong domestic and offshore demand, India's factory managers added on staff and boosted buying of inputs in February. "Favorable domestic and international demand prompted firms to increase purchasing activity and hire extra workers at above-trend rates," said S&P Global.

Indeed, the level of hiring at factories was the second-highest in the series history, "behind only that recorded in January," noted S&P Global.

Manufacturing-sector leaders expressed strong optimism about growth prospects for the coming 12 months, driven by client demand, said S&P Global.

India's factories faced higher input costs in February, including labor bills, but "the overall rate of (input) inflation eased for the third straight month to its weakest in a year," advised S&P Global

In contrast, India's factory managers raised prices, due to strong demand. Manufacturers in February "passed on higher labor costs to clients, facilitated by favorable demand conditions," said S&P Global.

Strength in India's factory sector may continue, if a recent forecast from the nation's central bank is accurate.

India's real gross domestic product (GDP) will expand by 6.7% in fiscal 2025, starting on April 1, the Reserve Bank of India (RBI) estimated in early February.

The February India PMI report was compiled by S&P Global from survey responses sent to 400 manufacturers from February 6 through February 24.