India’s manufacturing sector slows down in March amid West Asia crisis

India’s manufacturing sector slowed in March as growth in activity moderated due to rising costs, competitive pressures and global uncertainty, according to the HSBC India Manufacturing PMI report. The Purchasing Managers’ Index (PMI) fell to 53.9 in March from 56.9 in February, signalling a softer expansion.

The slowdown is attributed to a combination of domestic and international challenges that dampened the momentum seen earlier.

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PMI index fell below its long-run average of 54.2, marking the weakest improvement in business conditions in nearly four years.

“Growth in India’s manufacturing industry took a step back in March as cost pressures, fierce competition, heightened market uncertainty, and the war in the Middle East all contributed to softer increases in new orders and output,” the report said.

March data saw input prices increase to the greatest extent in over three and a half years. Aluminium, chemicals, fuel, jute, leather, fabric, oil, rubber, and steel were some of the items reported to have increased in price.

Indian manufacturers in March 2026 saw the strongest expansion in external sales since last September, with gains seen from customers in Australia, Brazil, Canada, mainland China, Europe, Japan, West Asia, Türkiye and Vietnam, the report said.

As reported by Reuters, China’s manufacturing sector expanded in March for a fourth straight month as output and new orders continued to grow, but rising price pressures intensified ‌sharply, according to a private-sector survey.

China’s Manufacturing Purchasing Managers’ Index (PMI), compiled by S&P Global, fell to 50.8 in March from 52.1 in February, missing analysts’ forecast of 51.6. The 50-mark separates growth from contraction.