India’s Manufacturing Growth Slows Slightly Amid Rising Costs

India’s manufacturing sector saw a slight slowdown in September, according to the latest HSBC India Manufacturing Purchasing Managers’ Index (PMI). While growth remains robust, the expansion pace has eased compared to previous months.

Rising input costs have pushed factory gate prices to their fastest increase in nearly 12 years. Companies have responded by adjusting selling prices, reflecting ongoing cost pressures.

Export orders showed encouraging signs, rising faster than in the previous month. This suggests that demand from markets outside the U.S. is helping offset the effects of U.S. tariffs on Indian goods.

On the employment front, growth has slowed, with fewer companies expanding their workforce compared to previous months. However, business confidence has strengthened, reaching a seven-month high. Firms cited GST rate reductions and expectations of increased demand as reasons for optimism about the year ahead.

Overall, despite rising costs and moderate slowdown, India’s manufacturing sector continues to perform strongly, demonstrating resilience amid global trade pressures.