India's Private Sector Activity Slows to Lowest Since October 2022

India's Private Sector Activity Slows

India’s business activity growth slowed to its lowest since October 2022, with domestic demand weakening despite a surge in export orders. The conflict in the Middle East has exacerbated economic challenges, leading to energy crunch and disruptions.

Key Points:

1. PMI Index shows slowing growth at 56.5 in March, below expectations.

2. Domestic demand weakens, offsetting record export orders.

3. Rising costs and inflation near four-year highs, impacting businesses.

4. Energy prices rise, widening current account deficit and weakening the rupee.

5. Trade deals with US and EU initially boosted business sentiment but challenges persist with costs and demand.