source :- Telegraph India
India’s Manufacturing Expansion kept growing in November, but the rate of growth slowed down from the month before. The most recent data from S and P Global shows that the Manufacturing Purchasing Managers Index has dropped to 56.6, down from 59.2 in October. This is the slowest improvement in operating conditions since February.
Even though it went down, the index is still well above the fifty-point line that separates growth from decline. This shows that manufacturing is still growing, but the pace has slowed after several months of stronger performance. A number over fifty means growth, a number under fifty means contraction, and a number of fifty means no change.
The data from November shows that the sector is doing well in some areas and poorly in others. The number of new orders and factory output both went up, but they were their lowest levels seen in nine months. This was in line with long-term trends. Some businesses said that higher productivity and a steady stream of new customers helped them make more goods. Others said that changng global conditions and low demand made it hard for them to increase production.
India’s Manufacturing Expansion Slows in November as PMI Eases to 56.6
Pranjul Bhandari, chief India economist at HSBC, said the latest numbers reflect the impact of external pressures. She pointed out that the final PMI reading for November confirmed that tariffs imposed by the United States have contributed to a slowdown in manufacturing activity. New export orders hit their lowest level in over a year, which means that demand for Indian goods around the world has dropped significantly. Bhandari added that business confidence has weakened as concerns grow over how tariff related pressures may influence production and export prospects in the coming months.
She also pointed out that the benefits of lowering the goods and services tax earlier may be fading. At first, the tax cuts helped keep demand up, but they may not be strong enough to fight the effects of tariffs anymore.
Export demand remained muted in November. The rate Manufacturing Expansion of growth in export orders slowed down and was at its Manufacturing Expansion slowest point in more than a year. Still, Indian manufacturers said that buyers in Africa, Asia, Europe, and the Middle East were still very interested, which shows that key markets are still driving overall demand even though the economy is slowing down.
Economists who study the sector say that the most recent numbers are not surprising. Uncertainty in the global market, tighter financial conditions in developed countries, and problems with trade have all affected decisions about buying and making things around the world. India has so far stayed strong, thanks to high levels of domestic consumption and ongoing capacity growth in a number of industries. However, the November figures indicate that manufacturing faces increasing pressure from global trade disruptions.
The sector’s overall performance in November suggests that businesses may be more careful when planning production cycles, especially if demand from outside stays low. Analysts will watch upcoming data closely to determine whether the slowdown stabilises or deepens in the next few months.
For now, Manufacturing Expansion in India remains in growth territory. The PMI continues to signal expansion, but the easing pace highlights the need for close monitoring of global trade conditions and domestic policy measures that can help sustain momentum. With new orders, output and export demand all showing signs of moderation, industry leaders and policymakers will be evaluating steps to support confidence and maintain the sector’s progress going into the new year.
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