India's robust business expansion is making significant strides in 2024, impacting both the industrial and services sectors into December. The composite purchasing managers index (PMI) for India, which reflects a combination of manufacturing and service segments, experienced a notable increase to 60.7 in December, up from 58.6 in November.
This rise indicates persistent growth, well above the 50-mark that distinguishes growth from contraction. In December, Indian companies across both sectors reported a faster upturn in new business intakes, demonstrating a positive trend from already high levels. The flash services PMI recorded an impressive 60.8 in December, an increase from 58.4 the previous month, while the manufacturing PMI rose to 57.4, up from 56.5. Demand for Indian goods and services remained strong throughout December.
The consistent improvement in demand was evident in the sharp increase in new orders, marking the most significant growth since July. Service providers were at the forefront of sales growth, although a strengthening trend was also observed across the manufacturing sector. With rising demand and sales, Indian companies ramped up hiring at record levels in December, with aggregate job creation reaching a survey peak.
This surge in employment was largely driven by a swift increase in outstanding business volumes and a positive outlook for output in 2025. However, as hiring continued, so did the challenges, with backlogs increasing at Indian enterprises. The growth in work pending completion was a contributing factor to the job creation observed in December. Further, private-sector managers throughout India displayed optimism about the upcoming year.
Both manufacturers and service firms expressed increased confidence concerning the year-ahead outlook for output and growth. The flash India PMI report was derived from survey responses from 400 manufacturers and 400 service providers between December 4 and December 11..