The Indian manufacturing sector ended the year 2017 on a strong note, with operating conditions in December improving at the strongest rate in five years driven by significant increase in new orders, a monthly survey said.

The Nikkei India Manufacturing Purchasing Managers' Index (PMI) rose to 54.7 in December, from 52.6 in November as growth was recorded across all three monitored categories -- consumer, intermediate and investment.

This is for the fifth consecutive month that the index has come in above 50-point mark that separates expansion from contraction.

"Strong business performance was underpinned by the fastest expansions in output and new orders since December 2012 and October 2016 respectively," said Aashna Dodhia, economist at IHS Markit and author of the report.

The uptrend was driven by stronger market demand from home and international markets, Dodhia added.