India's manufacturing activity slowed to a 14-month low in February, with the HSBC India Manufacturing Purchasing Managers' Index (PMI) slipping to 56.3 from 57.7 in January, according to a survey report released by S&P on Monday.

The decline in February's manufacturing PMI was driven by softer new orders and production growth.

The overall pace of growth for new business intake receded to the slowest since December 2023, however, it was above its long-run average.

Also, while there was an increase in purchasing activities, the pace of expansion eased to a 14-month low.

As per the report, companies are still optimistic about growth prospects for the coming year, with client demand expected to remain positive and support output.

"Although output growth slowed to the weakest level since December 2023, overall momentum in India's manufacturing sector remained broadly positive in February," Pranjul Bhandari, Chief India Economist at HSBC.