Mumbai, April 2 -- India's manufacturing sector expanded at a slower pace in March as rising costs, tough competition, and global uncertainties weighed on growth. The HSBC India Manufacturing PMI fell to 53.9 from 56.9 in February, marking the weakest improvement in nearly four years, though it remained in expansion territory.

Growth in new orders and output slowed to their lowest levels since mid-2022, with companies citing challenging market conditions and the impact of the Middle East conflict. Input costs rose sharply, reaching their highest level since August 2022, driven by higher prices for materials such as metals, fuel, and chemicals.

Despite this, companies only slightly increased their selling prices, as many chose to absorb ...