Page 15 - Policy Economic Report - September 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 service sectors, fell to 61.9 in September from 63.2 in August, marking a modest
slowdown but still indicating a sharp rate of expansion. This was the second-best reading in over two
years. Growth in factory output outpaced that of services, although the pace of increase moderated
across both sectors.

Figure 10: India PMI Index

Source- HSBC, S&P Global

India’s external position

India’s forex reserves

• India’s foreign exchange reserves rose by USD 4.698 billion to USD 702.966 billion in the week ending
September 12, according to the Reserve Bank of India’s latest Weekly Statistical Supplement. This
marks the third consecutive weekly increase, with the reserves crossing the much-awaited USD 700
billion mark.

• The RBI data showed that foreign currency assets (FCA), the largest component of forex reserves,
climbed to USD 587.014 billion, up by USD 2.537 billion. Gold reserves also surged, rising by USD 2.12
billion to reach USD 92.419 billion.

• According to RBI Governor, India’s foreign exchange holdings are now sufficient to cover 11 months
of imports.

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