Economic activity in India slowed in November, negatively impacting job creation, according to a flash survey conducted by HSBC Holdings Plc. The South Asian nation continues to face pressure from high tariffs imposed by the United States. The manufacturing Purchasing Managers’ Index (PMI) declined to 57.4 points from 59.2 in October, while the services PMI rose slightly to 59.5 from 58.9 the previous month. As a result, the composite PMI dipped to 59.9 this month from 60.4 in October.
These indicators reflect business confidence and are based on preliminary surveys, with final PMI figures subject to revision next month. Readings above 50 signal economic expansion, while those below indicate contraction.
HSBC reported that growth in new orders and business activity reached its weakest pace since May. The bank noted that easing pressure on operational capacity further limited employment generation.
The slowdown was mirrored in October’s trade data, where exports to the United States—the country’s largest trading partner—fell by 8.6%. The 50% tariffs introduced by former U.S. President Donald Trump have particularly hurt labor-intensive industries. These tariffs, along with broader uncertainty in global trade, pushed India’s trade deficit to a record high in October.
Reductions in goods and services tax (GST) in September lowered prices for most household items and helped offset some tariff impacts by boosting domestic demand. However, Pranjul Bhandari, HSBC’s chief economist, stated on Friday that new manufacturing orders “were weak, suggesting the GST-led rebound may have peaked.”