India's Manufacturing PMI Hits 4-Year Low in March Amidst Global Tensions

• India's manufacturing PMI dropped to a 45-month low of 53.9 in March from 56.9 in February, the weakest since June 2022.
• The decline is attributed to disruptions from the Middle East conflict, impacting global economy and Indian manufacturers.
• Input costs saw a 43-month high inflation due to rising prices of raw materials like aluminium, chemicals, and crude oil.
• Despite cost pressures, firms absorbed much of the increase, leading to output price inflation easing to a two-year low.
• Positive aspects include increased manufacturer optimism, strengthened external demand, and the fastest employment growth in seven months.