New Delhi, Oct. 11 -- India's manufacturing sector is expected to witness stronger demand in Q3FY27, even as cost pressures remain elevated, according to the Reserve Bank of India's (RBI) Industrial Outlook Survey.

During Q2FY27, India's manufacturing sector witnessed an improvement in demand conditions compared with the previous quarter, supported by stronger production, order books and capacity utilisation.

However, raw material cost pressures remained elevated, while sentiment regarding selling prices moderated, it noted.

"Pressures from raw material costs remained elevated, while sentiments on selling prices showed moderation."

At the same time, the Business Assessment Index (BAI) rose to 104.4 in Q2FY27 from 100.4 in Q1FY27, whic...