Plagued by frequent power outages, India’s manufacturing growth dropped to its slowest in 16 months, according to HSBC Purchasing Managers’ Index, which reported a figure of 52 in March.
According to HSBC PMI, which is compiled by financial information services company Markit, the figure was 54.2 in February.
A figure above 50 indicates expansion.
“Manufacturing activity lost momentum in March, with output growth slowing notably on the back of a deceleration in new orders and power outages,” said Leif Eskesen, Chief Economist for India and Asean, HSBC.
Reflecting the moderating core inflation, the survey said that the rate of input cost inflation was solid, but eased to the slowest in 32 months.
The core inflation moderated to 3.8 per cent in February.
The HSBC India Manufacturing PMI is based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 500 manufacturing companies.