India's manufacturing sector expanded at its slowest pace in nearly five years in July, as weak demand weighed on new orders and hiring growth softened for a third consecutive month.
The Purchasing Managers' Index (PMI) data, compiled by S&P Global, signals a loss of momentum in the world's fastest-growing major economy, raising questions about the sustainability of its growth trajectory.
While the sector remained in expansion territory, the deceleration was broad-based.
New orders declined, reflecting softer domestic and external demand.
Employment growth also eased, marking the third straight month of moderation in job creation within the manufacturing base.
These trends suggest that businesses are cautious about scaling operations despite the overall positive reading.