Weekly policy watch: Core sector output, PMI and forex reserves in focus

India’s economic calendar this week will focus on infrastructure output, business activity and the country’s external financial position.

Infrastructure output data on September 21

The August infrastructure output data will be released on September 21.

Output growth across India’s nine key infrastructure sectors rose to 5.4 per cent in July, up from 3.2 per cent in the same month last year but slower than the 6 per cent growth recorded in June 2026. The increase was supported by higher production of coal, refinery products, cement, electricity and iron ore.

The core sector data has been released under a new base year of 2022-23 since June, replacing the earlier 2011-12 base. The government has also added iron ore to the index, taking the number of core sectors to nine.

During April-July 2026-27, output across the key sectors grew 4.3 per cent, compared with 1.5 per cent in the same period a year earlier.

Finance ministry to meet bankers ahead of strike

The Ministry of Finance will meet the chief executives of public sector banks (PSBs), regional rural banks (RRBs), the Indian Banks’ Association (IBA) and NABARD on September 21 to review preparations for a three-day nationwide bank strike beginning September 28.

The meeting, chaired by the Secretary of the Department of Financial Services, will discuss contingency measures to ensure continuity of banking operations and essential customer services during the strike, according to a communication sent to banks.

The United Forum of Bank Unions (UFBU), an umbrella body of seven bank employee and officer unions, has called the strike over several pending demands. The implementation of a five-day banking week is one of the key demands.

HSBC PMI Flash on September 23

The HSBC India Manufacturing and Services PMI Flash data will be released on September 23, providing an early reading of business activity in the month.

India’s Manufacturing PMI fell to 52.8 in August from 53.5 in July. It was the lowest reading since August 2021 and remained below the long-run average of 54.2. However, the index stayed above the 50 mark, which indicates expansion. August marked the 59th consecutive month of growth in manufacturing activity.

The HSBC India Services PMI Business Activity Index rose to 54.1 in August from 53.3 in July. Although services activity improved, the August reading was the second-weakest since March 2022 and was slightly below its long-run average of 54.5.

New business in the services sector grew at a faster pace in August, supported by stronger customer demand and marketing efforts. However, the pace of expansion remained among the slowest in more than four years, with some firms reporting difficult market conditions and weaker demand for certain services.

Forex reserves data on September 25

The Reserve Bank of India (RBI) will release foreign exchange reserves data for the week ended September 18 on September 25.

India’s forex reserves fell by $4.924 billion to $780.782 billion in the week ended September 11, mainly due to a decline in foreign currency assets and gold reserves. Foreign currency assets, the largest component of the reserves, fell by $2.372 billion to $645.796 billion during the week.

The value of India’s gold reserves declined by $2.591 billion to $111.225 billion. Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) increased by $39 million to $18.845 billion.

India’s reserve position with the IMF stood at $4.916 billion during the week.

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