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India's manufacturing activity expanded at the weakest pace in three months in August, survey data from IHS Markit showed Monday.

The Nikkei manufacturing Purchasing Managers' Index, or PMI, fell to 51.7 in August from 52.3 in July. However, any reading above 50 indicates expansion in the sector.

Among components, both output and new orders grew at slower rates in August.

The rate of job creation remained marginal and broadly similar to the previous survey period.

On the price front, input price inflation remained sharp in August, as currency weakness contributed to higher raw material costs.

Indian manufacturers retained positive projections for output over the next 12 months, but the level of sentiment eased in August from July's 3-month high.

"Indeed, some of the key headwinds facing the economy include high global oil prices, monetary policy tightening, and capital outflows from emerging markets."