New Delhi, March 24 -- The West Asia crisis is taking a toll on Indian manufacturing and services sectors. Private sector companies are grappling with demand slowdown and input cost inflation.

The seasonally adjusted HSBC Flash India Purchasing Managers' Index (PMI) Composite Output Index fell to a nearly three-and-a-half year low of 56.5 in March from a final reading of 58.9 in February.

The Flash PMI is an early, advanced estimate of economic activity in the manufacturing and services sectors. Though the March preliminary reading is above PMI's expansion threshold of 50, the steep drop shows a loss of momentum.

Manufacturers seem to have been hit more. The HSBC Flash India Manufacturing PMI sank to a four-and-a-half-year low of 53.8 ...