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flag India's manufacturing grew in December 2025 but at its slowest pace in two years, with weaker demand and inflation easing.

flag In December 2025, India's manufacturing sector expanded at its slowest pace in two years, with the HSBC PMI falling to 55.0 from 56.6 in November, but still above the 50 threshold indicating growth. flag New orders, output, and exports increased at the slowest rate in over a year, owing to weaker demand and competition. flag Hiring and purchasing activity fell to multi-month lows, while inflationary pressures eased, with input and output prices rising at the slowest rate in nine months. flag Despite declining business confidence, strong domestic demand and low inflation have fueled cautious optimism for 2026.

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