Reflecting a loss of "growth momentum", manufacturing activities in the country slowed down to a six-month low in March amid softer increases in new orders, production and employment, according to a survey.
The Nikkei Markit India Manufacturing Purchasing Managers' Index (PMI) -- an indicator of manufacturing activity -- fell to 49.6, down from 52.3 in November, coming below the crucial 50 threshold which separates contraction from expansion.
Service providers' confidence with regard to the 12-month outlook for business activity remained positive.
This is the 22nd consecutive month that the manufacturing PMI has remained above the 50-point mark.
The Nikkei India Services Purchasing Managers' Index, which tracks services sector companies on a monthly basis, stood at 52 in September, down from August's 43-month high of 54.7, pointing to a slower and moderate rate of expansion.
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The Nikkei Markit India Manufacturing Purchasing Managers' Index (PMI) -- an indicator of manufacturing activity -- declined from 52.5 in April to a three-month low of 51.6 in May.
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A reading above 50 indicates expansion, while a score below this mark means contraction
The Nikkei India Manufacturing Purchasing Managers' Index (PMI) stood at 47.9 in July, down from 50.9 in June, its lowest mark since February 2009, and highlighted the first deterioration in business conditions in 2017 so far.
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The main factors contributing to the above-50.0 PMI reading were growth of both new orders and output as market conditions returned to normal and led to subsequent improvement in demand.
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A reading below 50 means contraction in the sector.
Sluggish rise in new business inflows and a cautious approach to costs reportedly led Indian manufacturers to shed jobs in September.
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The survey noted that advertising campaigns supported the increase in new work growth in the sector amid competitive pressures.
The services sector had slipped into contraction in July as confusion caused by the GST rollout triggered a dip in new business orders.
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During March, the rate of inflation slowed to the weakest in four months and was below the long-run survey average
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A reading above 50 indicates expansion while a one below this level means contraction.
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The Nikkei India Services PMI posted above the critical 50.0 level, which separates growth from contraction, for the fourth month running in May.
Supported by greater demand from both domestic and external markets, total new business rose at the fastest pace since March
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With factory production, activities across the private sector saw the biggest drop in over three years
The index went below the crucial 50 mark.
Currency scarcity weighed on manufacturing performance where growth of new work flows slowed
Companies are also worried about inflationary pressures building up.
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The Nikkei India Services Purchasing Managers' Index, which tracks the services sector firms on a monthly basis, stood at 50.3 in February, up from 48.7 registered in January.
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