• Notification Date: 16-12-2024
• Notification No: N/A

India’s Economy Finishes 2024 Strong with Boost in Jobs and Business Activity

The economy of India is ending 2024 on a high note, with business activity growing at its fastest pace in four months. According to recent research, businesses are thriving due to robust demand in both the industrial and services sectors.

In December, the India Composite Purchasing Managers’ Index (PMI) reached 60.7, matching the high point from August. This is a key indicator of economic health, where any value above 50 signifies growth. The PMI has consistently remained strong throughout the year, showing that businesses are expanding at a pace not seen since the global financial crisis in 2008.

The services sector, which plays a critical role in India's economy, had an especially strong month. Its PMI rose to 60.8 in December, driven by higher demand from both local and international customers. Manufacturing also experienced robust growth, with the PMI rising from 56.5 in November to 57.4. This growth is attributed to higher production, a surge in new orders, and a notable boost in hiring.

Employment growth stands out as one of the most significant achievements. Since the poll's inception in 2005, organizations have been hiring new employees at a rapid rate. This indicates that companies are optimistic about the future and are expanding their workforces to meet rising demand.

After two months of price increases, inflation has started to decline. Consumer inflation fell to 5.48% in November, which is welcome news for Sanjay Malhotra, the newly appointed governor of the Reserve Bank of India. Current projections suggest that the Reserve Bank may lower interest rates in February 2025, potentially driving further economic growth in the coming year.