India's Manufacturing Struggles Amid Tariff Pressures: PMI Hits Nine-Month Low

India's manufacturing sector experienced a slowdown in November, with the PMI dropping to 56.6, its lowest in nine months, due to soft sales and production growth. International trade tensions, particularly US tariffs, contributed to moderated expansion and business confidence decline, with negotiations ongoing for a trade framework.

India's manufacturing sector has witnessed a marked slowdown, as indicated by the latest data from the HSBC India Manufacturing PMI. The index fell to 56.6 in November, down from 59.2 in October, signaling a nine-month low. This decline points to milder growth due to challenging market conditions.

Experts suggest that the US tariffs have been a significant factor, causing a dip in international sales momentum despite favorable trends in regions like Africa, Asia, and the Middle East. Business confidence has also seen a notable drop, fueled by fears of ongoing tariff repercussions.

In response, Indian officials are working towards a framework trade deal with the US to ease the tariff burden on exporters. Meanwhile, inflation rates have subsided, with costs and charges rising slower. Employment in manufacturing, however, shows the softest growth in over two years, adapting to slower new order growth.