India’s Manufacturing Industry Registers Another Round Of Impressive Growth, Total New Orders & Output Expand At Above-Trend Rates

New Delhi: India’s manufacturing industry registered another round of impressive growth, with total new orders and output again expanding at above-trend rates, according to the HSBC India Manufacturing Purchasing Managers’ Index (PMI) released on Monday. Registering 56.6 in November, the seasonally adjusted PMI – a single-figure indicator of sector performance – was comfortably above the neutral mark of 50.0 and its long-run average of 54.2, according to data released by S&P Global.

Falling from 59.2 in October, however, the latest figure highlighted the slowest improvement in operating conditions since February, the report mentioned. Inflation rates receded in November, with input costs and selling charges rising at the slowest rates in nine and eight months, respectively. Pranjul Bhandari, Chief India Economist at HSBC, said that “India’s final November PMI confirmed that US tariffs caused the manufacturing expansion to slow”.

The new export orders PMI fell to a 13-month low. Business confidence, as indicated by expectations for future output, showed a fall in November, potentially reflecting increasing concerns about the impact of tariffs, he said. Indian manufacturers noted a substantial upturn in order book volumes, which they attributed to competitive pricing, positive demand trends and greater client interest. The overall rate of growth eased to a nine-month low, however, amid reports of challenging market conditions, delays in project starts and rivalry among firms, said the report.

Although companies suggested that the trend for international sales remained favourable – reflecting greater sales to clients in Africa, Asia, Europe and the Middle East – there was a mild loss of overall growth momentum. Downgraded forecasts stemmed from concerns around a competitive landscape, including competition from international firms, anecdotal evidence showed. However, companies remained confident of a rise in output over the course of the coming 12 months, said the report.

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