MUMBAI, May 2 (Xinhua) -- India's manufacturing activity in April grew at its slowest pace in eight months, said a release Thursday by IHS Markit which compiles the Nikkei India Manufacturing Purchasing Managers' index. 

Photo: Xinhua

The manufacturing index fell to 51.8 in April from 52.6 in the preceding month, said the release. 

"When looking at reasons provided by surveyed companies for the slowdown, disruptions arising from the elections was a key theme. Also, firms seem to have adopted a wait-and-see approach on their plans until public policies become clearer upon the formation of a government," said Pollyanna De Lima, principal economist at IHS Markit. 

The slowdown in growth of total sales, coupled with cashflow difficulties and competitive pressures, hampered output expansion in April. Although production rose, the increase was the slowest since last September, the release said. 

With price pressures in the manufacturing economy cooling and growth losing momentum, it becomes increasingly likely that India's central bank may cut its official rate for a third successive time in June, Pollyanna said. 

Vast majority of companies withheld hiring in April amid reports of sufficient workforce numbers to cope with existing workloads. However, aggregate manufacturing employment rose fractionally and to the weakest extent in the current 13-month sequence of job creation, the release said.