Growth
India’s private sector growth hits 3-year low as West Asia conflict dents demand: Survey
Mumbai/IBNS: India’s private sector growth slowed to a three-year low in March, as domestic demand weakened amid price shocks triggered by the West Asia conflict, a new survey said on Tuesday.
Compiled by S&P Global, the HSBC Flash India Composite Purchasing Managers’ Index (PMI) fell to 56.5 in March from 58.9 in February, marking the sharpest decline in 18 months.
The manufacturing sector bore the brunt of the slowdown, with the PMI dropping to 53.8 from 56.9, as geopolitical tensions—particularly the Iran conflict—dampened consumer and investor sentiment.
The services sector also showed signs of strain, with its PMI easing to 57.2 from 58.1, reflecting moderating demand conditions.
The survey comes on the back of a slowdown in India’s Gross Domestic Product (GDP) growth, which eased to 7.8% in the last quarter from 8.4% in the previous quarter.
Rising geopolitical tensions, including the US-Israel strike on Iran, have significantly pushed up input costs across sectors, particularly oil, energy, food, aluminium, steel, and chemicals.
In a potential positive development, US President Donald Trump on Monday announced a decision to hold off American strikes on Iran’s power and energy infrastructure for five days, following what he described as constructive discussions with Iranian officials.
Posting on Truth Social, Trump said:“I am pleased to report that the United States of America and the country of Iran have had, over the last two days, very good and productive conversations regarding a complete and total resolution of our hostilities in the Middle East.”
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