Manufacturing sectors in India and Turkey are experiencing divergent trends as 2024 comes to a close, reflecting broader economic challenges and opportunities. Despite easing cost pressures and strong job growth, India's manufacturing activity slowed to its weakest pace for the year, reaching a 12-month low in December as new business orders and production expanded at softer rates. This was elucidated through the Manufacturing Purchasing Managers' Index (PMI), which dropped slightly to 56.4 from 56.5 in November, indicative of a slowdown yet remaining above its long-run average of 54.1, signaling robust growth.

On a positive employment note, the private survey compiled by S&P Global and HSBC noted a quickened rate of job creation, the fastest in four months. However, the rate of new orders expansion slowed, signaling future growth concerns. Economist Ines Lam emphasized that competition and price pressures continued to hamper the sector, although there was an optimistic rise in export orders, uplifting overall market sentiment.

Conversely, Turkey's manufacturing sector is gradually stabilizing after months of contraction, albeit still under the threshold denoting growth. The PMI increased from 48.3 in November to 49.1 in December, marking the slowest rate of contraction in eight months. According to a survey by the Istanbul Chamber of Industry and S&P Global, while the decline in production has moderated, demand remains subdued with cautious optimism as inputs costs rose sharply, yet output price inflation has slowed. Andrew Harker, Economics Director at S&P Global Market Intelligence, noted that if current momentum continues, 2025 could see the sector return to growth aided by a more benign inflationary environment.

Despite improvement signs, Turkey's manufacturing sector saw renewed employment declines, posing challenges amid rising input costs due to higher raw material prices. Nonetheless, some firms offered discounts to boost sales, which slightly eased output price pressures.

In India, manufacturers look towards 2025 with expectations of favorable demand, advertising, and investment, albeit tempered by inflation and competitive pressures. The optimism in India's manufacturing hinges on global economic stability and internal policy adaptations to maintain growth momentum as industrial activities indicate a slowing trend.

These developments in both India and Turkey's manufacturing sectors underscore the complex interplay between domestic policy, global economic conditions, and sector-specific challenges. While India grapples with maintaining its growth trajectory amidst slowing order inflows, Turkey's journey towards stabilization presents a potential path to recovery if economic conditions allow. The role of exports in both economies becomes critical, as firms in India already demonstrate increasing international order volumes, which Turkey could emulate to bolster its manufacturing industry.

Ultimately, addressing inflationary pressures, enhancing production efficiencies, and facilitating favorable business environments will be crucial for both nations as they navigate these turbulent economic phases.