Manufacturing growth slowed in November, with the purchasing managers' index (PMI) dropping to an 11-month low of 56.5 from October's 57.5, a survey showed on Monday.

Competitive pressures and rising costs curbed factory activity, although the pace of expansion remained above the long-term average.

The seasonally adjusted HSBC India Manufacturing PMI, which tracks changes in output, new orders, employment and other key metrics, remained firmly in expansion territory above the 50-mark threshold separating growth from contraction.

"India’s manufacturing PMI eased slightly to 56.5 in November but continued to signal robust expansion," said Pranjul Bhandari, chief India economist at HSBC.

Strong international demand, marked by a four-month high in new export orders, supported growth, although domestic sales faced headwinds from price pressures and stiff competition, Bhandari added.

The survey highlighted a deceleration in output growth as manufacturers grappled with higher input costs.

Prices for key intermediates such as chemicals, cotton, leather and rubber rose, pushing output prices to their highest levels in 11 years as firms passed on rising costs.

“Producers faced intensifying cost burdens from freight, labour, and raw materials, leading to the steepest increase in selling prices since October 2013,” the report noted.

Despite cost pressures, new export orders surged, with survey participants citing strong demand from markets including Bangladesh, China, the US and Italy. International demand expanded at its fastest pace in four months.

Looking ahead, business confidence remains strong, bolstered by expectations of demand growth, marketing initiatives, and new product launches.