Page 17 - FIPI - Policy Economic Report - May 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Manufacturing PMI – India

? The HSBC Flash India Composite Output Index – a seasonally adjusted index that measures the
month on-month change in the combined output of India's manufacturing and service sectors
registered 61.2 in May 2025, up from 59.7 in April.

? This marks the strongest month-on-month growth since April 2024, driven largely by gains in the
services sector. The Services PMI Business Activity Index climbed to 61.2 in May from 58.7 in April,
indicating the fastest pace of growth in 14 months. Strong domestic and international demand,
along with technology investments and capacity expansion, are attributed as the key drivers.

? The Manufacturing PMI rose marginally to 58.3 in May from 58.2 in April, suggesting continued
strength.

? Firms thus expressed renewed optimism for future sales and activity, particularly in the services
segment.

India’s external position

India’s forex reserves

? India's total foreign exchange (forex) reserves dropped to $685.7 billion as of 16 May 2025. This
drop comes after the forex reserves hit a 7-month high in the first week of May 2025.

? The central bank data highlighted that India's foreign currency asset reserves witnessed a $280
million jump to $581.65 billion as per the latest release, compared to the previous $581.37 billion
levels.

? India's gold reserves with the Reserve Bank of India (RBI) were at $81.2 billion, a nearly 6 per cent
drop of $5.12 billion from their previous level of $86.33 billion in early May 2025.

? India's SDR holdings dropped $42 million to reach their current levels of $18.49 billion, compared to
its previous level of $18.53 billion.

? The Reserve position in the IMF also slid $3 million to its level of $4.371 billion, as of the 23 May
2025 data release, compared with $4.374 billion as per the previous RBI data release.

India’s foreign trade position

? India’s total exports (Merchandise and Services combined) for April 2025 are estimated at USD
73.80 Billion, registering a growth of 12.7 percent vis-à-vis April 2024.

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