India Composite PMI Falls to Lowest Level Since 2022

2026-03-24 05:19 By Judith Sib-at 1 min. read

The HSBC India Composite PMI fell to 56.5 in March 2026 from 58.9 in February, below market expectations of 58.7, flash estimates showed.

This was the weakest expansion in Indian private sector activity since October 2022, as growth moderated across both manufacturing and services amid the ongoing Middle East conflict.

Companies cited the war, volatile market conditions, and persistent inflationary pressures as key factors dampening growth.

Softer domestic demand weighed on new orders, which increased at the slowest pace in over three years, even as new export orders surged to a record high.

Cost pressures intensified, with input costs and selling prices rising at their fastest rates in 45 and seven months, respectively.

Despite these challenges, firms remained optimistic about output growth over the next 12 months, citing efficiency improvements, marketing initiatives, and new client inquiries as key drivers of their positive outlook.



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