India Manufacturing Growth Weakest Since June 2022

(RTTNews) - India's factory activity expanded at the slowest pace in nearly four years in March amid inflationary pressures along with disruption caused by the Middle East war, survey data from S&P Global showed on Thursday.

The HSBC manufacturing purchasing managers' index dropped to 53.9 in March from 56.9 in February. The flash score was 55.2. Moreover, this was the lowest reading since June 2022.

However, a score above 50 indicates expansion in the sector.

Both new orders and output grew at the slowest pace since mid-2022. The growth was curbed by challenging market conditions, cost pressures, and the war in the Middle East.

On the price front, input price inflation accelerated to the highest level in three-and-a-half years, led by higher costs for aluminum, chemicals, fuel, jute, leather, fabric, oil, rubber, and steel. Nonetheless, the selling price inflation receded to a two-year low amid customer-retention efforts and attempts to secure new clients at some firms.

External demand was favorable in March as international sales logged the quickest expansion since September 2025, with gains noted from clients in Australia, Brazil, Canada, mainland China, Europe, Japan, the Middle East, Turkey, and Vietnam.

The survey revealed that Indian manufacturers raised employment to the greatest extent in seven months and became more optimistic towards the year-ahead outlook for production.