In March, India's manufacturing activity experienced a notable slowdown, as indicated by the HSBC India Manufacturing Purchasing Managers’ Index (PMI), which fell to 53.9 from 56.9 in February, the lowest level since June 2022. This decline reflects softer growth in new orders and output, influenced by cost pressures, fierce competition, and heightened uncertainty due to the ongoing conflict in West Asia. Pranjul Bhandari, chief India economist at HSBC, highlighted that disruptions from the Middle East conflict are negatively impacting Indian manufacturers. Input prices rose sharply, driven by increased costs for aluminium, chemicals, and fuels, yet manufacturers raised output prices at the slowest pace in two years to retain customers. Despite these challenges, the survey noted a rise in employment, with the fastest pace of job growth in seven months, and a significant increase in export demand, particularly from markets in Australia, Brazil, and Europe. Additionally, for the first time in nearly 18 months, outstanding business volumes decreased, aided by increased recruitment and a slower rise in new orders.