India's manufacturing sector activity slowed to a nine-month low in November, with the HSBC India Manufacturing Purchasing Managers’ Index (PMI) falling to 56.6 from 59.2 in October. A PMI above 50 means growth, so the figure still shows expansion but at a weaker pace. The report said the slower rise in sales and production was mainly due to challenging market conditions. Pranjul Bhandari, Chief India Economist at HSBC, said, "India's final November PMI confirmed that U.S. tariffs caused the manufacturing expansion to slow." While exports to regions like Africa, Asia, Europe, and the Middle East stayed positive, the overall growth momentum lost steam. New export orders increased at the slowest pace in over a year, with the new export orders PMI dropping to a 13-month low. Business confidence also weakened sharply. Mr. Bhandari added, "Business confidence, as indicated by expectations for future output, showed a big fall in November, potentially reflecting increasing concerns about the impact of tariffs." India's Commerce Secretary Rajesh Agrawal expressed hope for a framework trade deal with the US this year to ease tariff issues affecting exporters. However, he noted the bilateral trade deal talks are ongoing and may take time. On prices, inflation eased as input costs and selling prices rose at their slowest rates in nine and eight months, respectively. Hiring and purchasing also slowed, with employment growth at its weakest in 21 months. Despite the slowdown, Indian manufacturers remain hopeful for output growth in the next year, but optimism is at a near three-and-a-half-year low. The report said, "Downgraded forecasts stemmed from concerns around a competitive landscape, including competition from international firms, as anecdotal evidence showed." The HSBC India Manufacturing PMI is based on surveys of around 400 purchasing managers across the country.