India’s Economic Health Analyzed: November 2025

India’s overall economy showed signs of slowing growth in November 2025. The ‘Composite PMI,’ a key measure of economic activity, dropped to 59.7, a decrease from 60.4 in October and slightly below an earlier guess of 59.9. This is the lowest reading we’ve seen in six months, but still, the economy is doing pretty well overall.

Key Points

1. Slowing Growth: Overall PMI decreased to 59.7, reflecting a gradual economic deceleration. 2. Manufacturing Weakness: Manufacturing slowed significantly, the weakest in 11 months observed. 3. Services Strength: Services continued to expand, boosting the overall economic picture. 4. Rising Orders: New orders are still increasing, albeit at a reduced rate. 5. Lower Costs: Input price inflation decreased, offering some relief for businesses. 6. Cooling Prices: Output price inflation lowered, indicating less pressure to raise prices.

Breaking Down the Numbers

The Composite PMI looks at different parts of the economy. It’s like a summary report. Manufacturing is how things are made, and services cover things like shops, restaurants, and healthcare. When the overall PMI goes down, it means businesses are generally reporting slower activity.

In manufacturing, things slowed down considerably. This means factories weren’t producing as much as they were before. However, the service sector, which includes things like tourism and banking, actually saw an increase in activity. This helped to keep the overall economy moving forward.

Businesses are still receiving more orders than they’re sending out, but the growth in orders has slowed down. This could mean that people are becoming more careful with their spending. The good news is that costs for businesses are also decreasing, which can help them to stay competitive.

Companies are also less likely to raise prices for their customers. This is probably because they’re seeing that demand isn’t as strong as it was previously. Overall, the economy is still expanding, even if the rate of growth is slowing.

The decrease in input price inflation (the cost of materials businesses buy) is particularly important. When costs go down, businesses can make more profit, and that can encourage them to invest and hire more people.

The decrease in output price inflation (the prices businesses charge customers) also played a role. Companies reduced their price increases, which further supported consumer spending.

These trends suggest a transition towards a more moderate pace of expansion, with underlying strength in the services sector.

“Understanding these economic indicators provides crucial insights for strategic decision-making, shaping investments and driving sustainable growth.”