Private sector activity slows in March—business confidence hits 7-month low
What's the story
India's private sector activity slowed marginally in March 2025, with the HSBC Composite PMI declining to 58.6 from last month's 58.8.
However, it stayed above the crucial mark of 58 for two months after falling to a low of 57.9 in January.
The survey participants cited intense competition as a major reason for the decline, with the threat of tariffs also weighing on manufacturing activity.
Business confidence hit a seven-month low in March amid intense competition.
Manufacturing recovery
Manufacturing sector shows resilience
Despite the overall slowdown, India's manufacturing sector exhibited signs of resilience in March.
The PMI for this sector rose to 57.6 from February's 14-month low of 56.3, although it remained below January's 57.7.
HSBC Chief India Economist Pranjul Bhandari observed, "The margin squeeze on manufacturers intensified as input price inflation ticked up while factory gate prices rose at the weakest rate in a year."
Service sector dip
Services activity sees a decline
The services sector didn't do as well, with its PMI falling to 57.7 in March from February's 59. This shows a slowdown in this sector's growth rate compared to manufacturing firms.
The HSBC report added that "manufacturing companies registered a faster upturn in new business from abroad than their services counterparts."
The overall job creation rate also witnessed a decline, hitting a six-month low during this period.