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Informist, Monday, Dec. 1, 2025

 

--India Nov manufacturing PMI 56.6 vs 59.2 in Oct 

 

NEW DELHI – India's manufacturing activity in November expanded at the slowest pace in nine months as the 50% tariff by the US hit export orders, S&P Global said Monday. The HSBC India Manufacturing Purchasing Managers' Index fell to 56.6 last month from 59.2 in October, the lowest since February, S&P Global, which compiles the PMI, said in a release. 

 

The final manufacturing PMI print for November was even lower than the flash figure of 57.4, data for which was released on Nov. 21. A PMI reading of more than 50 denotes expansion in activity, while a print below it shows contraction.

 

"India's final November PMI confirmed that US tariffs caused the manufacturing expansion to slow," Pranjul Bhandari, chief India economist at HSBC, said in the release. "Business confidence, as indicated by expectations for future output, showed a big fall in November, potentially reflecting increasing concerns about the impact of tariffs. The boost from the cuts in goods and services tax (GST) may be fading and it might be insufficient to offset the tariff headwind to demand," Bhandari said. 

 

The PMI data presents a more subdued picture of the manufacturing sector than the GDP data for the September quarter, released Friday. As per the GDP data, manufacturing grew at a six-quarter high pace of 9.1% in the September quarter. GDP expanded higher than expected at 8.2% in Jul-Sept, also a six-quarter high. 

 

Monday's PMI data could be a key consideration for the Reserve Bank of India's Monetary Policy Committee, which is expected to lower interest rates this Friday even as expectations of a repo rate cut have decreased after the GDP data.

 

Total new orders and output in November expanded at the slowest pace since February and new export orders rose at the weakest pace in over a year. A softer rise in sales restricted growth in buying volumes and job creation, while positive sentiment towards output prospects slipped to its lowest level since mid-2022, S&P Global said. 

 

Indian manufacturers cited challenging market conditions, delays in project starts, and competition for the slower rise in order book volumes. While overall exports rose at the weakest pace in over a year, firms saw higher sales to clients in Africa, Asia, Europe, and West Asia.

 

Manufacturers adjusted their hiring efforts and purchasing activity in line with a slowdown in new order growth in November, S&P Global said. Employment expanded at the "softest pace in the current 21-month period of uninterrupted growth," S&P Global said.

 

Cost pressures remained muted across the manufacturing sector in November, with the rate of inflation falling to its weakest since February. "This meant that firms were able to limit hikes to selling prices, with charge inflation retreating to an eight-month low," S&P Global said.  End

 

Reported by Shubham Rana

Edited by Avishek Dutta

 

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