HSBC India: Manufacturing sector activity at six-month high, fastest 14-year growth in exports
New Delhi| The activities of the country’s manufacturing sector rose to a six-month high of 57.7 in January, 2025 due to the fastest growth in exports in close to 14 years. HSBC India’s Manufacturing Purchasing Managers’ Index (PMI) had fallen to a one-year low of 56.4 per cent in December, 2024.
The Chief Economist’s Argument
Pranjul Bhandari, chief economist (weight), HSBC, said growth in new orders was supported by strong domestic demand and international sales. Manufacturers in India continued to increase production volumes. The increase is the fastest since October, 2024. The PMI remaining above 50 is indicative of an expansion in activities and a decline in the figure below it.
Cost pressure on companies lowest in 11 months
On the prices front, HSBC India said, cost pressures on companies reached their weakest level in 11 months. Cost-related inflation has declined for the second consecutive month, reducing pressure on companies to increase production prices. However, selling prices have increased strongly due to pick up in demand.
Recruitment of additional personnel
Bhandari said, due to strong growth in sales and optimistic projections of growth in activity, companies recruited additional employees at the beginning of the fourth quarter of the current financial year. Statistics show that strong job creation has enabled firms to take control of their workload.
