India's Manufacturing PMI Hits 2-Year Low in Dec 2025; Job Growth Slows

• India's manufacturing PMI dropped to 55 in December 2025, a two-year low, missing market estimates of 56.5, indicating the weakest expansion in nearly two years.
• Job creation in the sector fell to a 21-month low, and new export orders saw their weakest rise in over a year, hitting a 13-month low.
• The slowdown is attributed to challenging market conditions, project delays, rising competition, US tariffs, and a fading boost from GST cuts.
• Easing cost pressures provided some relief, with input cost inflation at a nine-month low and selling price increases at an eight-month low.
• Business confidence for future output fell to a nearly three-and-a-half-year low due to competitive landscape concerns, despite companies remaining optimistic overall.

Why It Matters: India's manufacturing sector faces significant slowdown in Dec 2025, impacting jobs and confidence.