Finance & MarketsHigh Priority (8/10)India

India March Manufacturing Activity Slows as Middle East War Impacts New Orders

India's manufacturing sector experienced a slowdown in March 2025, with the Middle East conflict weighing on new orders and domestic demand, according to the latest PMI data.

Key Points

  • India's manufacturing activity slowed in March due to Middle East war impact
  • Softer domestic demand weighed on new orders
  • The conflict disrupted supply chains and increased input costs
  • Growth in new orders eased compared to previous months

Full Details

India's manufacturing activity slowed in March 2025 due to the impact of the Middle East war on new orders and domestic demand. The latest manufacturing PMI data revealed that growth in new orders eased during the month, with softer domestic demand weighing on order intake. Indian goods producers reported weaker new business volumes as the geopolitical tensions in the Middle East disrupted supply chains and increased input costs. The slowdown comes amid broader economic uncertainty, with the ongoing conflict affecting global trade routes and energy prices. ICIS noted that the US-Iran conflict has significant implications for energy and chemical markets in Asia, with supply disruptions continuing to impact manufacturing operations.

Why It Matters

The manufacturing slowdown could have cascading effects on India's industrial output, employment, and export performance, particularly in sectors heavily reliant on Middle East raw materials and energy supplies.

Sourceicis.com

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