New Delhi: The manufacturing sector in India has reached its slowest growth level in the last nine months, according to a survey of purchasing managers, and many see the main reason as new US tariff rules complicating exports. Factories across the country reported fewer orders, slower production, and rising worries about global demand.
Industry data point to the slowdown having started when the US announced higher import taxes on several Asian products, including some Indian ones. The move has kept Indian exporters on edge since the US accounts for one of India’s largest markets for textiles, engineering parts, chemicals, and electronic items, among others. If export becomes difficult, the factories automatically cut down production to avoid losses.
Many owners of factories say they face a double challenge now. First, the global economy is unstable, and buyers are cutting down orders. Second, the prices of raw materials inside India are rising again, increasing the production cost. Small and medium industries are most affected because they don’t have big financial backup.
Workers are also concerned because a slowdown in factory growth often leads to fewer shifts and fewer overtime hours. Some workers are concerned that if this continues, there will be temporary layoffs as companies try to save money.
Economists believe the next few months will be very important. With improved numbers on exports, factories may return to their normal speed. But if US tariffs continue, or become stricter, India might face a longer slowdown.
