<p>Bengaluru: Growth in India's overall business activity softened in March as robust manufacturing expansion failed to offset a slowdown in the services sector, a private survey showed on Monday.</p>.<p>HSBC's flash India Composite Purchasing Managers' Index , compiled by SP Global, slipped to 58.6 in March from February's final reading of 58.8, lower than a <em>Reuters</em> poll's median prediction of 59.0.</p>.<p>The 50-mark divides growth from contraction.</p>.<p>The manufacturing PMI index increased to 57.6 from 56.3, remaining in the expansion territory for more than three-and-a-half years.</p>.India's manufacturing sector growth slips to 14-month low in Feb: Purchasing Managers' Index.<p>But the dominant-services sector's PMI index fell to 57.7 from 59.0 in February, contributing to the fall in the overall index.</p>.<p>"India's manufacturing sector expanded at a faster pace in March ... The output index rose to its highest level since July 2024," noted Pranjul Bhandari, chief India economist at HSBC.</p>.<p>New orders - a key gauge for demand - and output, rose from last month, signaling better operating conditions for manufacturers. In contrast, new business in services eased as demand took a hit.</p>.<p>However, international demand for both manufacturing and services slowed, expanding at the slowest pace in three months.</p>.<p>"The moderation in new export orders growth was also noteworthy amid tariff announcements," added Bhandari.</p>.<p>U.S. President Donald Trump has imposed fresh tariffs on goods from China, Canada and Mexico and his constant flip-flops on trade has made the business outlook uncertain. More tariffs on U.S. trading partners are looming on April 2.</p>.<p>Indian businesses were less upbeat about future activity as sentiment for the coming year fell to a seven-month low, which also slowed the pace of hiring.</p>.<p>Input costs increased at a faster pace in March as goods producers recorded an acceleration to a three-month high.</p>.<p>"The margin squeeze on manufacturers intensified as input price inflation ticked up while factory gate prices rose at the weakest rate in a year," she said.</p>.<p>Businesses did not pass on higher input costs to clients and overall charge inflation rose at its weakest pace since February 2022.</p>.<p>India consumer inflation fell below the Reserve Bank of India's (RBI) medium-term 4% target in February for the first time in six months, raising the chances of another rate cut next month.</p>
<p>Bengaluru: Growth in India's overall business activity softened in March as robust manufacturing expansion failed to offset a slowdown in the services sector, a private survey showed on Monday.</p>.<p>HSBC's flash India Composite Purchasing Managers' Index , compiled by SP Global, slipped to 58.6 in March from February's final reading of 58.8, lower than a <em>Reuters</em> poll's median prediction of 59.0.</p>.<p>The 50-mark divides growth from contraction.</p>.<p>The manufacturing PMI index increased to 57.6 from 56.3, remaining in the expansion territory for more than three-and-a-half years.</p>.India's manufacturing sector growth slips to 14-month low in Feb: Purchasing Managers' Index.<p>But the dominant-services sector's PMI index fell to 57.7 from 59.0 in February, contributing to the fall in the overall index.</p>.<p>"India's manufacturing sector expanded at a faster pace in March ... The output index rose to its highest level since July 2024," noted Pranjul Bhandari, chief India economist at HSBC.</p>.<p>New orders - a key gauge for demand - and output, rose from last month, signaling better operating conditions for manufacturers. In contrast, new business in services eased as demand took a hit.</p>.<p>However, international demand for both manufacturing and services slowed, expanding at the slowest pace in three months.</p>.<p>"The moderation in new export orders growth was also noteworthy amid tariff announcements," added Bhandari.</p>.<p>U.S. President Donald Trump has imposed fresh tariffs on goods from China, Canada and Mexico and his constant flip-flops on trade has made the business outlook uncertain. More tariffs on U.S. trading partners are looming on April 2.</p>.<p>Indian businesses were less upbeat about future activity as sentiment for the coming year fell to a seven-month low, which also slowed the pace of hiring.</p>.<p>Input costs increased at a faster pace in March as goods producers recorded an acceleration to a three-month high.</p>.<p>"The margin squeeze on manufacturers intensified as input price inflation ticked up while factory gate prices rose at the weakest rate in a year," she said.</p>.<p>Businesses did not pass on higher input costs to clients and overall charge inflation rose at its weakest pace since February 2022.</p>.<p>India consumer inflation fell below the Reserve Bank of India's (RBI) medium-term 4% target in February for the first time in six months, raising the chances of another rate cut next month.</p>