New Delhi, Oct. 1 -- India's manufacturing engine lost momentum in September, cooling from a 17-year high the previous month and expanding at its slowest pace in four months, according to a private survey released Wednesday. Meanwhile, factory prices surged at their fastest rate in nearly 12 years.

The contrast points to intensifying cost pressures, with manufacturers passing on rising input costs to consumers. The slowdown also reflects early strains from Washington's newly imposed 50% tariffs on Indian goods, a move that could challenge the resilience of Asia's third-largest economy, which has outpaced all other major economies this year.

The HSBC India Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, eased to 5...