The ongoing conflict involving America and Israel's war on Iran is beginning to impact India's economy, as reflected in the latest Purchasing Managers' Index (PMI) readings. The final HSBC India services PMI fell to 57.5 in March, down from 58.1 in February, indicating the slowest rate of expansion in 14 months. Similarly, the manufacturing PMI dropped to 53.9, the lowest level in nearly four years. Despite the decline, the services sector has outperformed manufacturing and remains above its long-term average of 54.4. Notably, foreign orders increased, reaching their second highest on record, and job creation was reported as the strongest since mid-2025. However, the overall economic momentum is waning, with rising input costs potentially dampening demand. India's heavy reliance on oil imports exposes it to external shocks, and the prolonged nature of the conflict could exacerbate inflation and growth challenges.