India’s business activity slows to six-month low in November

PMI for November

India’s business activity expanded at its slowest pace in six months in November, with the Flash HSBC India Composite PMI Output Index easing to 59.9, according to preliminary data released on November 21.

This is the first time since June that the index has slipped below the 60-mark, signalling a moderation in manufacturing to a nine month low of 57.4, even as services expanded to 59.5 from 58.9 in the previous month.

"The HSBC flash manufacturing PMI eased, though the improvement in operating conditions remained healthy. The rise in new export orders matched that seen in October. However, overall new orders came in soft, indicating that the GST-led boost may have peaked. Cost pressures eased considerably, and so did prices charged," said Pranjul Bhandari, chief India economist, HSBC.

The reading also marks the third straight month of decline, after the composite PMI hit a record high of 63.2 in August. The loss of pace comes at a time when the economy is navigating weaker global conditions that are beginning to soften order flows.

The third quarter is expected to be comparatively challenging. The Reserve Bank of India projects GDP growth to slow to 6.4 percent in the October–December period, before easing further in the final quarter of FY26. Growth in the second quarter is also likely to have moderated from the 7.8 percent expansion seen in the first quarter.

The official GDP numbers for Q2 FY26 will be released on November 28 and will offer clearer signals on how domestic demand, festive spending and export orders have shaped the trajectory of the economy so far.