India's economy concluded 2024 on a strong footing, marked by the fastest private sector output growth in four months. The HSBC December flash India Composite Purchasing Managers' Index (PMI) rose to 60.7 from November's 58.6, signaling significant expansion in both services and manufacturing sectors.
The services sector, a dominant force in India's economy, saw its PMI climb to 60.8, a four-month peak, while manufacturing improved to 57.4. This growth is attributed to a surge in domestic orders and international demand, bolstering sales and enhancing business optimism for 2025. Notably, this period also witnessed record job growth, reflecting companies' confidence in sustained economic momentum.
Easing inflationary pressures have further stimulated demand, providing potential relief for the Reserve Bank of India (RBI). This environment may pave the way for possible rate cuts in February 2025, fostering a more conducive atmosphere for economic expansion.
In summary, as 2024 draws to a close, India's economy exhibits solid momentum, with robust business growth, increased employment, and a positive outlook for the coming year.