India's private sector maintains strong growth at the end of 2024

The HSBC Flash India Composite Output Index a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors registered 60.7 at the end of the 2024 calendar year.

Rising from a final reading of 58.6 in November, the latest reading highlighted the strongest growth rate for four months.

Indian private sector output growth strengthened to its highest in four months during December, according to the latest HSBC flash PMI data compiled by S&P Global.

The acceleration was reflected in both the manufacturing and service sectors, as companies across the two segments welcomed a faster upturn in new business intakes.

Aggregate job creation climbed to a survey peak amid a faster increase in outstanding business volumes and optimistic expectations four output in 2025. Meanwhile, a moderation in cost pressures somewhat curbed charge inflation.

The HSBC Flash India Manufacturing PMI a single-figure snapshot of factory business conditions calculated from measures of new orders, output, employment, supplier delivery times and stocks of purchases recovered from November's two-month low of 56.5 to 57.4 in December. This pointed to an improvement in manufacturing sector conditions that was substantial and stronger than seen on average across the series history.

Demand for Indian goods and services continued to improve in December, as seen by a sharp increase in new orders that was the most pronounced since July.

With new business remaining on an upward trend, private sector firms in India continued to expand operating capacities by recruiting extra staff.

For the second month in a row, business optimism among private sector companies strengthened in December. Finally, manufacturing-only data showed that firms scaled up input purchasing in December.

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