India’s Private-Sector Growth Slows to 6-Month Low in November: Weakest Manufacturing PMI in Nine Months Raises Economic Caution

India’s private-sector growth has slowed to a six-month low in November 2025, driven by the weakest manufacturing PMI in nine months due to reduced new business orders. While the services sector offered partial support, economists warn of rising uncertainty and the need for strategic policy interventions. Full analysis here.

India’s private-sector economic activity slowed sharply in November 2025, slipping to a six-month low, according to the latest Purchasing Managers’ Index (PMI) data released this week. The manufacturing sector recorded a particularly steep deceleration, posting its weakest PMI reading in nine months, driven primarily by softening demand and a significant drop in new business orders. The slowdown has raised fresh caution among industry observers and policymakers, who are closely monitoring the implications for India’s broader economic trajectory in the coming quarters.

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India’s Private-Sector Growth Slows to 6-Month Low in November: Manufacturing Weakness Signals Pressure

The November PMI data highlights a clear decline in factory output, as companies grapple with a slump in order inflows, tightening financial conditions, and persistent global trade uncertainty. The slowdown aligns with earlier warnings from economists who anticipated a cooling phase in industrial activity after a robust first half-year performance.

Several manufacturers reportedly adopted a more conservative production stance in response to weakening domestic and export demand. Firms also cited inflationary pressure on key raw materials, uneven supply availability, and broader macroeconomic volatility affecting cost planning and revenue predictability.

Services Sector Cushions the Fall

Despite the manufacturing contraction, India’s services economy provided much-needed support, limiting the scale of the slowdown. Expansion in financial services, retail, and technology services helped offset losses on the industrial front, although analysts note that services performance too showed signs of losing momentum compared to earlier months.

The divergence between the two sectors has amplified concerns about India’s dependence on services to sustain growth, especially as global economic tightening continues and business confidence softens amid geopolitical disruptions.

India’s Private-Sector Growth Slows to 6-Month Low in November: Economic Caution and Policy Implications

The latest numbers come at a crucial time when India’s economic planning bodies and the Reserve Bank of India (RBI) are closely evaluating monetary-policy direction. With inflation still hovering above comfort zones and global commodity markets remaining volatile, analysts expect a restrained approach rather than aggressive intervention.

For now, the moderation in private-sector performance is seen as a warning signal rather than a crisis, but economic strategists argue that sustained weakness in manufacturing could weigh heavily on employment generation, export competitiveness, and long-term investment sentiment.

Industry Voices & Market Reactions

Several industry leaders have urged targeted policy support, including easing credit flow to MSMEs, accelerating infrastructure-linked incentives, and fast-tracking supply-chain reforms that could reduce production costs. Market analysts caution that if new business inflow does not revive in the next quarter, India may witness downward revisions in GDP forecasts for FY2025–26.

Equity markets reacted cautiously but did not show a sharp correction, indicating that investors are awaiting further data and RBI guidance before adjusting expectations.

India’s Private-Sector Growth Slows to 6-Month Low in November: Looking Ahead

Economists believe India’s economic momentum may gradually stabilize if global supply chains recover, geopolitical tensions ease, and consumer-demand cycles rebound after festival-season fluctuations. However, with global uncertainty expected to persist into early 2026, business confidence and manufacturing revival remain key variables.

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India still maintains one of the strongest growth rates among major economies, but the latest PMI trend underscores the need for strategic recalibration and reforms to safeguard expansion against external shocks.