Weekly policy watch: Manufacturing, services PMI & forex reserves in focus

India’s economic calendar this week will focus on business activity across the manufacturing and services sectors, along with the country’s external financial position.

HSBC Manufacturing PMI final data on November 2

The final HSBC India Manufacturing Purchasing Managers’ Index (PMI) data for October will be released on November 2.

India’s manufacturing activity strengthened in September, with the HSBC Manufacturing PMI rising to 55.1 from 52.8 in August. However, the average reading for the second quarter of 2026-27 stood at 53.8, its lowest since the same quarter in 2021.

The September reading was slightly below the flash estimate of 55.7 released earlier that month. The index is based on changes in new orders, output, employment, suppliers’ delivery times and stocks of purchases.

A PMI reading above 50 indicates expansion in activity, while a reading below 50 signals contraction. Manufacturing activity remained in the expansion zone for the 59th consecutive month in September. The reading was also the highest since February, when it stood at 56.9.

HSBC Services PMI final data on November 4

The final HSBC India Services PMI data for October will be released on November 4.

The services sector recorded stronger activity in September, with the HSBC Services PMI rising to 55.2 from 54.1 in August. The index remained above the 50 mark for the 62nd consecutive month, indicating continued expansion.

Demand from digital companies and businesses in food, insurance, lending, software, transport, tourism and travel supported growth during the month. New orders rose at the fastest pace in three months in September.

The index tracks four broad segments: consumer services, finance and insurance, real estate and business services, and transport, information and communication.

Forex reserves data on November 6

The Reserve Bank of India (RBI) will release foreign exchange reserves data for the week ended October 30 on November 6.

India’s forex reserves fell for the seventh consecutive week to $719.8 billion in the week ended October 23, mainly due to a decline in gold reserves.

Total reserves fell by $1.3 billion during the week, even as foreign currency assets increased by $1.4 billion. Gold reserves declined by $2.7 billion, largely due to valuation losses as gold prices fell 4 per cent to $4,165.58 per ounce during the reporting week.

After reaching a record high of $785.7 billion in the week ended September 4, reserves declined by $66 billion over the following seven weeks. The fall came as the RBI sold dollars in the foreign exchange market to limit volatility and support the rupee.

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