India’s manufacturing sector saw a sharp moderation in growth recently, with the HSBC India Manufacturing PMI, compiled by S&P Global, easing to 56.6 in November from 59.2 in October. This marks the slowest pace of expansion since February, driven largely by a notable decline in new export orders amid the impact of rising US tariffs.

Export demand fell to a 13-month low, pulling down business confidence and weighing on production expectations. While cost pressures softened, manufacturers scaled back hiring and reduced input procurement as overall demand weakened.

Official figures from the National Statistics Office also reflected a broader industrial slowdown, with October’s industrial production rising just 0.4 per cent — a 13-month low — owing to subdued growth in manufacturing, mining and power.

Although some firms reported improved orders from Africa, Asia and the Middle East, the decline in US-bound shipments and fading benefits of earlier tax cuts have tempered the sector’s near-term outlook.

(Source: Deccan Chronicle)