About one in 10 companies hired additional staff, while less than 2% of companies will cut staff in 2024, according to the HSBC India Manufacturing PMI report.NEW DELHI: India’s manufacturing employment not only increased for the 10th consecutive month in December, but also the job creation rate accelerated to the fastest pace in four months, according to a new report.
According to the HSBC India Manufacturing PMI report, around one in 10 companies hired additional staff, while less than 2% of companies will cut staff in 2024.
The report said, “Continued improvements in new labor intake have encouraged Indian manufacturing companies to purchase additional inputs for use in the production process. Growth remains above trend.” He points out.
India’s manufacturing activity ended a strong year in 2024 on a weak note, with signs of a gradual slowdown in the industrial sector increasing.
HSBC economist Ines Lam said there was some upside to growth in new export orders, which rose at the fastest pace since July.
Ram added that input price increases eased slightly, capping a year in which Indian manufacturing felt the strain of steep cost pressures.
“Although new export sales grew at a slower rate than new business overall, the pace of growth in the former strengthened as companies were able to secure international orders from around the world,” the report said.
Capacity pressure among Indian manufacturers remains moderate, as evidenced by a further slight increase in work pending completion or unstarted.
Indian manufacturers were confident of increasing production towards 2025.
The optimism reflected expectations for advertising, investment and strong demand. Still, sentiment was subdued by concerns over inflation and competitive pressures.
“For input inventories, increased purchasing and shorter lead times supported further monthly increases,” the report said.
