India’s manufacturing sector growth slows in July, according to the HSBC India Manufacturing Purchasing Managers’ Index (PMI). Multiple components of the survey weaken compared with earlier months, taking the overall activity measure close to a five-year low. The PMI reflects changes in new orders, output, employment, supplier delivery times and inventories of purchases. Survey results indicate that while manufacturing remains in expansion territory, the pace of improvement moderates. New orders growth eases, input purchases soften, and hiring growth declines, suggesting less momentum in activity. At the same time, the survey data show that demand continues to support production and overall sector activity, helping keep the index above the expansion threshold. The combination of resilient demand with slower rates of growth in orders, purchasing and employment points to a challenging operating environment for manufacturers in July. The PMI therefore signals continued expansion, but at a slower pace than in the preceding period.