The HSBC Markit Economics manufacturing report said the headline index for India's goods-producing firms came in at 52 in March, down from 54.2 in February.
Figures above 50 indicate business growth.
Growth in new business orders accelerated in March, "however, the PMI [purchasing managers' index] was down to the lowest level in 16 months," Markit said.
Verizon backing off plan to slow unlimited data
Pepsi launches stevia-sweetened soda