Key Highlights

• Composite PMI slipped to 59.9 in November 2025 from 60.4 in October

• Manufacturing PMI dropped to 57.4, the slowest growth in nine months

• Services PMI improved slightly to 59.5, showing steady resilience

• New orders, business activity and export demand all weakened

• Input cost and output price inflation fell to multi month lows

• Business confidence hit the lowest level since July 2022

India Private Sector Growth Slows in November as Manufacturing Weakens

India’s private sector expansion continued in November, but the pace of growth slowed noticeably. The composite PMI fell to 59.9 from 60.4 in October — still comfortably above the 50 mark that signals expansion, yet the softest reading in six months.

The slowdown comes mainly from manufacturing. The manufacturing PMI dropped to 57.4 in November from 59.2 in October, marking the weakest improvement in production and orders in nine months. Companies reported slower new business inflows, weather related disruptions and stronger global competition, especially from lower cost suppliers abroad.

In contrast, the services sector held firm. The services PMI inched up to 59.5 from 58.9, showing steady demand from consumers and businesses. This helped cushion the overall slowdown, but could not fully offset the drag from factories.

What’s Behind the Slowdown?

1. Demand Boost May Be Fading

Survey respondents noted that the earlier jump in demand driven by GST compliance and festive spending seems to have levelled off.

2. Global Challenges Persist

Export orders rose, but at the weakest pace since March. Slower global growth and rising competition are weighing on India’s outward focused sectors.

3. Slower Orders Despite Lower Costs

Input cost inflation and output price inflation eased to multi month lows. While this is positive for margins, it also reflects softer demand, hinting at slower volume growth ahead.

Implications for the Economy and Markets

Overall Economy

India is still growing strongly, but the pace is normalising. For momentum to stay solid, infrastructure spending, services strength and consumption will need to carry the load.

Manufacturing-Heavy Sectors

Industrial firms, capital goods makers and export dependent businesses may face pressure from softer order books and stronger competition.

Services and Consumption Sectors

These sectors are likely to remain stable and may outperform manufacturing, supported by domestic demand and festive season spillover.

Policy Outlook

Easing cost pressures and slower economic momentum could strengthen the case for a rate cut by the Reserve Bank of India. However, this depends on inflation staying under control and global risks not worsening.

Final Word

India’s economy remains on a growth path, but the November data shows a cooling trend. With the composite PMI at 59.9, expansion is still healthy — yet the six month low signals caution. Manufacturing has clearly slowed, while services continue to provide support. For investors and businesses, the outlook suggests staying optimistic on India, but preparing for a steadier and slightly slower phase of growth.