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India’s business activity picked up during December. The latest HSBC ‘flash’ PMI data compiled by S&P Global stated that 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 expansion in new domestic orders quickened, suggesting a pick-up in growth momentum in the economy. In addition, sustained increases in input costs have pushed manufacturers to continue to raise selling prices.

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. There were quicker increases in output at both goods producers and service providers. 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. HSBC Flash India Services PMI Business Activity Index stood at 60.8 from 58.4 in November and HSBC Flash India Manufacturing PMI Output Index stood at 60.4 from 59.1 in November.

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. Service providers led the rise in sales, although growth strengthened across the two tracked sectors. Improving international demand for Indian goods and services continued to boost total sales, as seen by a sustained upturn in new export orders. Moreover, December's expansion was marked and the quickest in five months. On this front, manufacturing companies recorded a faster increase than their services counterparts. With new business remaining on an upward trend, private sector firms in India continued to expand operating capacities by recruiting extra staff. The overall rate of growth climbed to a new series peak, amid record increases in both the manufacturing and service sectors.