Garment employee tailors garments on stitching machines at an attire manufacturing unit in Krishnarajapuram, Bengaluru. File | Picture Credit score: Allen Egenuse J.
India’s manufacturing sector exercise eased to a nine-month low in November, primarily owing to softer rise in gross sales and manufacturing amid experiences of difficult market circumstances, a month-to-month report mentioned on Monday (December 1, 2025).
The seasonally adjusted HSBC India Manufacturing Buying Managers’ Index (PMI) fell from 59.2 in October to 56.6 in November, highlighting the slowest enchancment in working circumstances since February.
Within the Buying Managers’ Index (PMI) parlance, a print above 50 means enlargement, whereas a rating beneath 50 denotes contraction.
“India’s ultimate November PMI confirmed that US tariffs prompted the manufacturing enlargement to sluggish,” mentioned Pranjul Bhandari, Chief India Economist at HSBC.
“Though firms recommended that the pattern for worldwide gross sales remained beneficial – reflecting higher gross sales to shoppers in Africa, Asia, Europe and the Center East – there was a light lack of total development momentum,” the report mentioned.
On common, new export orders rose on the weakest tempo in over a yr.
“The brand new export orders PMI fell to a 13-month low. Enterprise confidence, as indicated by expectations for future output, confirmed a giant fall in November, probably reflecting growing issues concerning the affect of tariffs,” Mr. Bhandari mentioned.
On November 28, Commerce Secretary Rajesh Agrawal mentioned India is hopeful of reaching a framework commerce take care of the US this yr itself that ought to handle the tariff subject to the advantage of Indian exporters.
Each international locations have been in negotiations for a very long time, and the primary tranche of a bilateral commerce deal was anticipated by the autumn of 2025, however the Trump administration’s imposition of tariffs on Indian exports has created hurdles.
Whereas noting that the Bilateral Commerce Settlement (BTA) will take time, Mr. Agrawal mentioned India is engaged in protracted negotiations with the US on a framework commerce deal that may handle the reciprocal tariff problem confronted by Indian exporters. “The enhance from the cuts in items and companies tax (GST) could also be fading, and it is perhaps inadequate to offset the tariff headwind to demand,” Mr. Bhandari famous.
On the worth entrance, inflation charges receded in November, with enter prices and promoting expenses rising on the slowest charges in 9 and eight months respectively.
On the employment entrance, producers in India adjusted their hiring efforts and buying exercise consistent with a slowdown in new order development. Employment expanded on the softest tempo within the present 21-month interval of uninterrupted development, the report mentioned.
Going forward, firms remained assured of an increase in output over the approaching 12 months, however constructive sentiment fell to its lowest stage in practically three-and-a-half years.
“Downgraded forecasts stemmed from issues round a aggressive panorama, together with competitors from worldwide companies, as anecdotal proof confirmed,” the report mentioned.
The HSBC India Manufacturing PMI is compiled by S&P International from responses to questionnaires despatched to buying managers in a panel of round 400 producers.
Printed – December 01, 2025 12:59 pm IST