Page 19 - Policy Economic Report - March 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Source- PIB

India PMI

HSBC India Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 56.9 in
February from January's 55.4. A PMI above 50 signals expansion. India's factory activity expanded at its
fastest pace in four months in February as strong domestic demand drove new orders and production.
However, growth in new export orders continued its slowing trend that began in mid-2025, restricting
employment creation in the manufacturing sector. New export orders grew at the slowest pace in 17
months, suggesting U.S. tariff uncertainty remains despite a recent trade deal with India.

Input cost inflation remained moderate and unchanged from January but manufacturers raised their
selling prices at the fastest rate in four months as strong demand allowed them to pass on increased
costs. Employment increased to a four-month high but only marginally. Just 4% of firms reported hiring
while most made no staffing changes.

India’s external position

India’s forex reserves

India’s foreign exchange reserves declined sharply in the week ended March 6, dropping to $716.81
billion from $728.49 billion the previous week, according to data released by the Reserve Bank of India
(RBI).

Most of the decline came from foreign currency assets, which fell by $9.8 billion during the week. The
value of gold reserves also decreased by $1.6 billion. Foreign currency assets, which form the largest
component of India’s reserves, are expressed in US dollar terms and reflect the impact of fluctuations in

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