India's manufacturing sector continued to experience growth in employment for the 10th consecutive month in December, with the pace of job creation accelerating to the fastest rate in four months, according to the HSBC India Manufacturing PMI report. Approximately 10% of companies hired additional staff during the month, while fewer than 2% reduced their workforce in 2024.

The report attributes the increased hiring to improvements in new work intakes, which encouraged manufacturers to purchase more inputs for production. Although India's manufacturing activity showed some signs of a slight slowdown toward the end of 2024, the sector still ended the year on a positive note. Notably, the growth in new export orders picked up, rising at the fastest pace since July.

While input prices eased slightly in December, Indian manufacturers faced significant cost pressures throughout the year. The growth of new export orders, while still slower than total new business, showed a strengthened pace, reflecting successful efforts by Indian companies to secure international orders.

Capacity pressures remained mild, with a marginal increase in work that was pending completion or not-yet-started. As for the outlook for 2025, Indian manufacturers expressed confidence in rising output, driven by optimism surrounding advertising, investment, and expected demand. However, concerns about inflation and competitive pressures tempered overall sentiment.

Overall, the sector's resilience suggests a positive outlook for India's manufacturing industry, even as challenges such as cost pressures and global competition persist.