West Asia Conflict Slows India's Private Sector Growth to Multi-Year Low
India's private sector economy showed a significant loss of momentum in March, with growth slowing to its weakest pace in over three years, according to the latest HSBC Flash Purchasing Managers' Index (PMI). The composite index, which measures activity across both manufacturing and services, fell to 56.5 from 58.9 in February, marking its lowest level since October 2022. The slowdown was primarily driven by a sharp deceleration in domestic demand, which companies linked to heightened uncertainty, volatile market conditions, and inflationary pressures stemming from the ongoing conflict in West Asia. The manufacturing sector bore the brunt of the impact, with its PMI slumping to a four-and-a-half-year low of 53.8. This signaled the weakest pace of factory output growth since August 2021, as businesses reported that geopolitical tensions were weighing heavily on sentiment and demand. The services sector, which constitutes the largest share of India's GDP, also experienced a notable slowdown, contributing to the broad-based easing in business activity. Despite the domestic challenges, the data revealed a silver lining in the form of international orders, which reached a record high in March. This divergence suggests that external demand remains resilient even as local consumption weakens. The situation has drawn high-level attention, with Prime Minister Narendra Modi addressing the Lok Sabha on the crisis and flagging concerns over potential disruptions to crucial shipping routes like the Strait of Hormuz. While the PMI readings remain above the 50-mark that separates expansion from contraction, the steep decline highlights the vulnerability of India's economic momentum to external geopolitical shocks. The combined pressures of weaker demand and rising input costs present a complex challenge for policymakers and businesses navigating an increasingly volatile global environment.
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First signs of fallout emerge! US-Iran war hits India’s private sector growth; manufacturing activity slumps to over 4.5-year low - The Times of India
This was significantly below the ... steepest slowdown in a year and a half, indicating a clear easing in business activity.The manufacturing sector was hit the hardest, with its PMI dropping to a four-and-a-half-year low of 53.8 from 56.9. Heightened uncertainty and volatility linked to the Middle East conflict weighed on sentiment, leading to the weakest pace of factory output growth since August 2021.The services sector, which makes up the largest share of India’s GDP, also ...
India's private sector growth hits 3 year low as Middle East war hits demand - The Economic Times
India's private sector saw its slowest growth in three years in March. Price increases from the Middle East conflict impacted domestic demand. However, international orders reached a record high. Manufacturing and services sectors experienced a slowdown. Despite cost pressures, business optimism ...
India's private sector growth slows to 3.5-year low in March: HSBC | Asianet Newsable
India's private sector activity slowed to its weakest pace since October 2022, with the HSBC Flash PMI Composite Output Index dropping to 56.5 in March. The slowdown, driven by weaker domestic demand, Middle East tensions, and inflation, hit manufacturing hard.
The HSBC Flash India PMI® Composite* ... of India's manufacturing and service sectors - fell from a final reading of 58.9 in February to 56.5 in March, highlighting the weakest pace of growth in close to three-and-a-half years". The data highlighted that the slowdown was primarily ...
India’s Private Sector Growth Slows To Over 3-Year Low In March Due To West Asian War
India’s PMI (Purchasing Managers’ Index) declined to 56.5 in March compared to 58.9 in the previous month. The HSBC flash PMI for March was at its lowest level since October 2022. According to the companies surveyed, the war in West Asia and volatile market conditions have weighed on growth
'Situation worrisome': PM Modi clears India's stand on Iran war, flags impact of Hormuz disruption | India News - The Times of India
India News: NEW DELHI: Prime Minister Narendra Modi on Monday addressed the Lok Sabha on the ongoing crisis in West Asia, triggered on February 28 when the United.
India’s private sector growth slows to over 3-year low in March, weighed down by Mideast conflict
Abhishek Chinnappa | Getty Images News | Getty Images · India's private sector activity in March slowed to its lowest level since October 2022 as weaker domestic demand for goods and services offset the highest rise in international orders, according to the HSBC flash Purchasing Managers' Index compiled by S&P Global. HSBC's flash India Composite PMI...
The HSBC Flash India Manufacturing PMI also declined from 56.9 in February to 53.8 in March, marking a four-and-a-half-year low. So while the India's private sector continues to expand, growth momentum has weakened significantly amid geopolitical tensions and rising cost pressures. ... In the times when negativity is becoming a USP in the news ...
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