Indian Manufacturing Sector Sees Employment Growth for 10th Consecutive Month

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Posted by NewAdmin on 2025-03-04 12:15:40 |

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India's manufacturing sectorconcluded a robust 2024 on a softer note, showing signs of a gradual slowdown,albeit moderate, in industrial activity. Despite this, employment in the sectorcontinued to rise for the 10th consecutive month in December, with the pace ofjob creation reaching its fastest rate in four months, according to the latestreport. Approximately one in ten companies hired additional staff, while fewerthan 2% of firms reduced their workforce in 2024, as stated in the HSBC IndiaManufacturing PMI report. The report highlighted that the increase in new workintakes prompted companies to purchase more inputs for production processes,maintaining growth rates above the trend.

Though manufacturing activityshowed some signs of slowing, the growth of new export orders picked up, risingat the fastest rate since July. Ines Lam, economist at HSBC, noted that whilethe rise in input prices eased slightly, Indian manufacturers had facedsignificant cost pressures throughout the year. Despite slower growth in newexport sales compared to total new business, the pace of export growthstrengthened as companies secured international orders from various globalmarkets.

Capacity pressures remained mild,with only a small increase in the volume of unfinished or unstated work. Looking ahead to 2025, Indianmanufacturers remain optimistic about a rise in output, fueled by expectationsof increased advertising, investment, and favorable demand. However, thisoptimism is tempered by concerns over inflation and competitive pressures. Thereport also noted continued growth in input inventories, purchasing activity,and shorter lead times, contributing to another monthly increase in production.

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