According to IHS Markit "manufacturers highlighted that strain on capacity and raw material shortages are expected to last through 2021." It noted that the supply crunch was raising production costs for manufacturers, who "made efforts to pass higher cost burdens on to clients."
The survey said its measure of new orders increased and that though factories tried to recruit more workers, the pace of hiring was the slowest in five months.
The report added that recovery would likely be seen in the service sector as well, after it was derailed earlier this year by domestic travel restrictions imposed during the Lunar New Year break to prevent further outbreaks.
"With COVID-19 restrictions expanded and lockdown measures re-introduced in many states, Indian manufacturers look set to experience a challenging month in April."