India’s manufacturing sector continued to grow in November, but the pace slowed as export demand weakened to a 13-month low. The latest HSBC India Manufacturing Purchasing Managers’ Index (PMI) showed a clear moderation in momentum.
The PMI slipped to 56.6 in November from 59.2 in October. This marks the slowest improvement in operating conditions since February. Still, the reading stayed well above the neutral 50.0 mark and above the long-term average of 54.2.
Manufacturers reported solid growth in new orders, supported by competitive pricing, steady demand, and stronger client interest. However, the overall pace of expansion eased to a nine-month low. Firms cited project delays, tougher market conditions, and rising competition as key challenges.
Output also grew but at its weakest level since February. Some companies saw production rise thanks to new business and efficiency gains. Others said that softer demand for certain products limited their output.
Export orders increased at the slowest rate in more than a year. Sales continued to come from clients in Africa, Asia, Europe, and the Middle East, but overall momentum remained weak.
Employment rose again, but only slightly, marking the softest increase in the current 21-month growth streak. Purchasing activity also grew at its weakest pace since February as firms adjusted to slower order flows.
Price pressures eased across the sector. Input cost inflation fell to its lowest level since February, giving manufacturers room to limit price increases. As a result, output charge inflation dropped to an eight-month low.
Business confidence also weakened. Expectations for future output fell to the lowest level in nearly three-and-a-half years. Companies linked their downgraded outlook to rising competition, including pressure from overseas manufacturers.
Pranjul Bhandari, Chief India Economist at HSBC, said the final November PMI results confirm that U.S. tariffs slowed India’s manufacturing expansion. She noted that the earlier boost from GST cuts may now be fading and may no longer be enough to counter the drag from tariffs.
