India's manufacturing segment has stared to be impacted by global slowdown. It was insulated from meltdown till October and expanded despite unfavorable financial conditions. The ABN Amro's Purchasing Managers' Index (PMI) for India slipped to 45.8 following low demand. PMI is considered as a scale to determine the performance of manufacturing sector. It was started in 2005 and registered decline in manufacturing segment for first time.

The output index was 61.7 in September which shows the sound position of manufacturing sector. It was declined to 54.1 in October and further declined to 44.6 in the month of November. Domestic and international demand was at satisfactory level till October but it suffered in November. The new export orders sub-index also declined to 46.7 in November from 49.7 in October.

The employment index is not contracted which was at 50 points in November. It indicates that employment level remained as it is. However, it can shrink in coming times following retrenchment drive by many firms. PIM for China had already shown contraction leading to job loss by many people. However, China may control the situation following announcement of many fiscal measures for stability of economy. India has yet to take such measures.