India’s private sector activity in March slowed to its weakest pace since October 2022, as ongoing tensions in the Middle East, rising inflationary pressures and unstable market conditions weighed on growth, according to the latest PMI data released by HSBC.
The HSBC Flash India PMI Composite Output Index, which measures the combined output of manufacturing and services, declined from 58.9 in February to 56.5 in March, marking the slowest pace of expansion in nearly three-and-a-half years.
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Mar 232026 - Time 10.20Hrs
HSBC stated “March data highlighted the weakest expansion in Indian private sector output since October 2022…. The HSBC Flash India PMI(r) Composite* Output Index – a seasonally adjusted index that measures the monthon-month change in the combined output 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 driven by weaker domestic demand for goods and services, even as international orders rose to the strongest level in the survey’s history. Companies cited the Middle East war, inflationary pressures and market instability as key factors dampening growth. –
