• Slow down in the manufacturing sector


• Manufacturing PMI fell to 56.6


• A slowdown in sales-production added to the concern

India’s Manufacturing Sector: It hit a nine-month low of 56.6 in November. The decline was mainly due to slower growth in sales and production, reflecting challenges in the growing market, said the monthly HSBC India Manufacturing Purchasing Managers’ Index (PMI) report released on Monday. A PMI score above 50 indicates expansion, while a score below 50 indicates contraction.

Pranjal Bhandari, chief Indian economist at HSBC, blamed the US as the main cause of the slowdown tariffMentioned. According to the report, growth in new export orders was the slowest in a year and the index fell to a 13-month low. Although companies reported higher sales in Africa, Asia, Europe and the Middle East, countries with positive international sales trends, overall growth slowed slightly. Bhandari noted that manufacturing expectations (business confidence) fell significantly in November, raising concerns about the impact of tariffs.

Amid growing concerns over the manufacturing sector, Commerce Secretary Rajesh Agarwal said on November 28 that India expects a trade deal with the US this year itself, which would resolve the issue of tariffs for Indian exporters, after the Trump administration imposed tariffs on Indian exports that stalled a bilateral trade agreement between the two countries. Bilateral trade agreements may take time, however India Engaged in an Interim Framework Trade Agreement with the US. Which will solve the mutual tariff challenge. Inflation eased in November.

Raw materials costs rose at their slowest pace in nine months and sales charges rose at their slowest pace in eight months, with employment growth the slowest in a 21-month stretch as the manufacturing sector responded to a slowdown in new order growth. Firms’ confidence that output will grow over the next 12 months remained positive, but this positive sentiment fell to the lowest level in more than three years, according to the report, reflecting pessimistic forecasts due to competitive conditions including increased competition from international firms.