India Manufacturing PMI Slows to Four-Year Low

India's manufacturing Purchasing Managers' Index (PMI) declined to 53.9 in March from 56.9 in February, marking the weakest improvement in overall business conditions in nearly four years. This deceleration was attributed to factors such as cost pressures, fierce competition, heightened market uncertainty, and disruptions linked to the conflict in the Middle East. Input costs, including for aluminium, chemicals, and fuels, rose sharply, reaching their highest level in over three-and-a-half years. Despite this, Indian firms largely absorbed these costs, leading to the slowest increase in output prices in two years. On a positive note, employment in the sector grew at its strongest pace in seven months, and external sales expanded significantly, with gains from clients across various global regions. Pranjul Bhandari of HSBC provided commentary on these developments.