India's Manufacturing Growth Hits 2-Year Low in December Amid Slowing Orders

• India's manufacturing activity growth fell to a two-year low in December, primarily due to slower new order intake.
• The HSBC India Manufacturing PMI dropped to 55 in December from 56.6 in November, though still indicating expansion.
• New orders saw their slowest growth in two years, and production growth hit a 38-month low.
• Despite the slowdown, the sector ended 2025 positively, with expectations of continued business in Q4 FY25-26 and low inflationary pressures.
• Factory employment marginally increased, and raw material costs rose negligibly, with charge inflation at a 9-month low.

Why It Matters: India's manufacturing growth slowed significantly in December but remains in expansion, with positive outlook for 2026.