Mon Dec 01 07:29:47 UTC 2025: Summary:
India’s manufacturing sector experienced a slowdown in November 2025, reaching a nine-month low due to weaker sales and production. The HSBC India Manufacturing Purchasing Managers’ Index (PMI) fell to 56.6, the lowest since February. This slowdown is attributed to U.S. tariffs, which have negatively impacted export orders and business confidence. While new export orders still grew, the pace was the weakest in over a year. Despite ongoing negotiations for a trade deal with the U.S., uncertainty remains regarding the tariff issue. Inflation rates have also receded, but the boost from GST cuts may not be enough to offset the tariff impact. Employment growth has slowed, and business confidence has fallen to a three-and-a-half-year low due to concerns about competition.
News Article:
Indian Manufacturing Growth Slows to 9-Month Low Amid Tariff Concerns
New Delhi, December 1, 2025 – India’s manufacturing sector is showing signs of strain, with activity slowing to a nine-month low in November, according to the latest HSBC India Manufacturing Purchasing Managers’ Index (PMI). The PMI fell to 56.6 from 59.2 in October, signaling the weakest improvement in operating conditions since February.
The slowdown is largely attributed to softer sales and production, compounded by challenging market conditions and the lingering impact of U.S. tariffs. While export orders continue to grow, the pace has slowed significantly, reaching a 13-month low.
“The U.S. tariffs are clearly taking a toll,” said a top economist. “Business confidence has taken a significant hit, reflecting growing concerns about the negative impact of these tariffs on Indian exports.”
Ongoing negotiations for a trade deal with the U.S. offer a glimmer of hope. Commerce Secretary Rajesh Agrawal indicated India remains optimistic about reaching a framework agreement this year, which would address the reciprocal tariff challenge faced by Indian exporters.
The report also noted that inflation rates have receded, with input costs and selling charges rising at slower rates. However, the positive effects of previous GST cuts may be insufficient to offset the headwinds created by the tariffs.
Employment growth within the manufacturing sector has also slowed, and future output expectations have fallen to a three-and-a-half-year low, reflecting broader concerns about competition, particularly from international firms. The slowdown poses a challenge to the Indian economy.
First Piper 