Indian Manufacturing Sector Sees Continued Employment Growth for Tenth Consecutive Month
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New Delhi, Jan 3 (NationPress) Employment in the Indian manufacturing sector has risen for the tenth consecutive month in December, with the pace of job creation accelerating to its fastest rate in four months, according to a recent report.
Approximately one in ten companies added to their workforce, while less than 2% of firms reduced jobs in 2024, as detailed in the ‘HSBC India Manufacturing PMI’ report.
"Continued enhancements in new work intakes have led manufacturing firms in India to procure additional inputs for their production processes. The growth rate has consistently surpassed its trend," the report highlighted.
India's manufacturing sector concluded a robust 2024 with a slight softening, amid indications of a moderate slowdown in industrial activity.
There was a positive trend in the growth of new export orders, which increased at the most rapid pace since July, stated Ines Lam, an economist at HSBC.
The increase in input costs saw a slight decrease, marking the end of a year when Indian manufacturers faced significant cost pressures, Lam commented.
"Although new export sales grew at a slower rate than overall new business, the growth pace for exports improved as companies secured international contracts from around the world," the report explained.
Capacity pressures in the Indian manufacturing sector remained mild, as indicated by a slight increase in work that was either pending completion or yet to begin.
As manufacturers look ahead to 2025, there is optimism regarding production increases.
This optimism is bolstered by advertising, investment, and expectations of favorable demand; however, concerns about inflation and competitive pressures have tempered sentiment.
"Regarding input inventories, growth in purchasing and shorter lead times have supported another monthly increase," the report mentioned.
