India's manufacturing sector hits 45-month low: PMI plunges to 53.9
What's the story
India's manufacturing sector has hit a major roadblock, with the Purchasing Managers's Index (PMI) plunging to a 45-month low of 53.9 in March. The PMI was at a healthier 56.9 in February, indicating a sharp slowdown in activity during the month under review. This is the lowest reading since September 2021 when it stood at 53.7, according to data released on April 2.
Historical trends
PMI's trajectory in 2026 and previous years
The PMI has seen a roller-coaster ride since 2026. It started at 55 in December, rose to 55.4 in January, and peaked at 56.9 in February. The index largely hovered between 55-59 during 2024 and 2025, peaking at a high of 59.1 in March and July of those years, respectively, and hitting an all-time high of 59.3 in August 2025.
Market impact
Significance of current PMI reading and its implications
The current PMI reading of 53.9 is a far cry from its previous highs, signaling a slowdown in manufacturing activity. This decline comes in the wake of the Iran war and the blockade of the Strait of Hormuz, through which a significant portion of India's oil and gas flowed before the conflict. Despite this dip, it's worth noting that the index has stayed above 50 throughout the dataset, suggesting that manufacturing activity is still growing albeit at a slower pace.