India’s Manufacturing PMI Grows Above Trend Despite Impact of US Tariffs

New Delhi: India’s manufacturing sector continued to show strong performance in November, with both new orders and production expanding at above-trend levels, according to the HSBC India Manufacturing Purchasing Managers’ Index (PMI) released on Monday.

The seasonally adjusted PMI stood at 56.6 in November, well above the neutral mark of 50.0 and higher than the long-term average of 54.2, as per data from S&P Global. However, the reading was lower than October’s 59.2, marking the slowest growth in operating conditions since February.

Inflation pressures eased during the month, with input costs and output charges rising at their slowest pace in nine and eight months, respectively.

Pranjul Bhandari, Chief India Economist at HSBC, noted that US tariffs contributed to the slowdown in the pace of manufacturing growth. The PMI for new export orders dropped to a 13-month low, and expectations for future output declined, signalling concerns over the tariff impact.

Despite these challenges, manufacturers reported a solid rise in new orders, supported by competitive pricing, improving demand conditions, and increased client enquiries. However, overall growth momentum weakened to a nine-month low, with firms citing difficult market conditions, delays in project launches, and heightened competition.

International sales trends remained positive, with stronger demand from Africa, Asia, Europe, and the Middle East, though global growth momentum moderated slightly.

The report also indicated concerns about intensified competition, including from overseas firms, contributing to more cautious business forecasts.

Nevertheless, companies remain optimistic, expressing confidence that output will increase over the next 12 months.

With inputs from IANS