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

India's Manufacturing Activity Slows to 45-Month Low in March

India's manufacturing activity slowed significantly in March, with the Purchasing Managers' Index (PMI) declining to 53.9, a 45-month low. This reading, released on April 2, marks a notable downturn from the 56.9 recorded in February.

The March print is the weakest since September 2021, when the PMI stood at 53.7. This decline reverses the upward trend observed at the start of 2026, with the PMI rising from 55 in December to 55.4 in January and 56.9 in February. The PMI had largely remained in the 55-59 range throughout 2024 and 2025, with notable peaks of 59.1 recorded in March 2024 and July 2025, as well as a high of 59.3 in August 2025.

The significant decline in the PMI reading of 53.9 is attributed to the moderation in manufacturing momentum following the Iran war and the blockage of the Strait of Hormuz. This key shipping route, through which a substantial portion of India's oil and gas flowed before the conflict, has contributed to the slowdown.

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Despite the decline, the PMI has remained above the 50-mark throughout the dataset, indicating continued expansion in manufacturing activity, albeit at a slower pace.