India's Manufacturing Purchasing Managers' Index (PMI) declined to 57.5 in August from 58.1 in July, marking a slowdown in growth to a three-month low, yet remaining well above the long-term average of 54.0. Despite the decline, the manufacturing sector continues to expand, although the rate of new business and output growth has softened due to competitive pressures and inflation concerns. The easing of cost pressures contributed to increased purchasing activity among manufacturers, leading to a notable rise in pre-production inventories. Job creation has moderated, but overall employment growth remains solid relative to historical data. The Reserve Bank of India's GDP growth forecast has been slightly revised upward to 7.2% for FY25, reflecting improved demand conditions. Analysts maintain a cautious outlook amid ongoing inflation and competitive market dynamics.