Page 20 - Policy Economic Report - October 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Manufacturing PMI – India

? The HSBC Flash India Composite Output Index, which measures the combined performance of
India’s manufacturing and services sectors, fell to 59.9 in October from 61.0 in September, marking
its lowest level since May this year, according to data released by S&P Global.

? This seasonally adjusted index, which tracks month-on-month changes in the combined output of
the two sectors, indicated a slower rate of expansion. However, overall growth remained strong,
with the index staying well above the neutral mark.

? A reading above 50 indicates economic expansion, while one below 50 shows contraction in the
manufacturing, services, or construction sectors. A reading of exactly 50 signifies no change.

? New orders placed with private sector companies in India expanded sharply in October, though the
pace of growth slowed to its weakest in five months. The softer increase was driven by a loss of
momentum in the service sector, even as goods producers recorded a slightly faster rise than in
September. Service providers noted that competition, as well as floods and landslides, constrained
sales.

? In contrast, the HSBC Flash India Manufacturing PMI rose to a two-month high of 58.4 in October
from 57.7 in September. This weighted index, based on new orders, output, employment, suppliers’
delivery times, and stocks of purchases, signaled a notable improvement in manufacturing
conditions

India’s external position

India’s forex reserves

? India’s foreign exchange reserves rose by $4.496 billion, reaching $702.28 billion for the week
ending October 17, majorly driven by an increase in the value of gold reserves.

? Foreign currency assets (FCA), the largest part of the reserves, fell by $1.692 billion to $570.411
billion. These assets are influenced by changes in the value of currencies such as the euro, pound,
and yen.

? The value of gold reserves rose sharply by $6.181 billion to $108.546 billion. Special Drawing Rights
(SDRs) also saw a slight increase of $38 million, reaching $18.722 billion.

? India’s reserve position with the International Monetary Fund (IMF) fell by $30 million to $4.602
billion in the reporting week, according to RBI data

India’s foreign trade position
? India’s total exports (Merchandise and Services combined) for September 2025 is estimated at US$

67.20 Billion, registering a growth of 0.78 percent vis-à-vis September 2024.

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