**India’s Manufacturing Growth Slows as Factory Prices Hit 12-Year High**

*By Mudit Dube | Oct 01, 2025, 05:57 PM*

India’s manufacturing sector experienced a slowdown in growth last month, recording its slowest pace in four months. This deceleration comes amid a sharp surge in factory gate prices, which have risen at the fastest rate in nearly 12 years.

According to the HSBC India Manufacturing Purchasing Managers’ Index (PMI), compiled by S&P Global, the index fell to 57.7 in September from a stronger reading of 59.3 in August. The PMI is a crucial indicator of economic health, with readings above 50 signifying monthly growth in activity. The recent decline suggests the manufacturing sector is facing significant challenges.

Rising input costs and intense competitive pressures have contributed to a moderation in new orders and output expansion. Despite these hurdles, there is a silver lining: new export orders have picked up pace compared to the previous month.

Pranjul Bhandari, HSBC’s Chief India Economist, noted that demand outside the US appears to be compensating for the decline in demand from the US, which has been impacted by tariffs. Additionally, business confidence has risen to a seven-month high.

Companies attribute their increased optimism to recent goods and services tax (GST) rate relief and the expectation of favorable demand in the year ahead, signaling cautious but positive prospects for the sector moving forward.
https://www.newsbytesapp.com/news/business/india-s-manufacturing-growth-declines-as-input-prices-hit-12-year-high/story