India's private sector expansion decelerated to its weakest pace in three months during June, driven by a broad-based softening in demand across both manufacturing and services industries.
The latest Purchasing Managers' Index (PMI) data reveals that business confidence has also deteriorated, slipping to its lowest reading since January.
The decline in new orders weighed heavily on output growth, signaling a potential headwind for near-term economic momentum.
This slowdown comes as markets monitor the trajectory of India's growth story.
A sustained dip in private sector activity could influence expectations for monetary policy and fiscal support in the coming quarters, particularly if the trend persists into the second half of the year.
Investors will be watching for further confirmation of this trend in upcoming official GDP data and subsequent PMI releases.