Page 23 - FIPI - Policy & Economic Report May 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Table 2: Index numbers and inflation rate

Source: PIB

India PMI

India’s private sector activity moderated in May 2026 amid geopolitical uncertainties and weakening
external demand conditions, although overall business activity continued to remain firmly in expansionary
territory. According to the HSBC Flash India Composite Purchasing Managers’ Index (PMI), compiled by
S&P Global, the composite PMI eased to 58.1 in May from 58.2 in April, indicating continued but slightly
slower growth in manufacturing and services activity.

The manufacturing sector witnessed some moderation during the month. India’s Manufacturing PMI
declined to 54.3 in May from 54.7 in April, marking a two-month low, although remaining well above the
50-mark that separates expansion from contraction. The slowdown reflected softer growth in new orders,
moderation in output, and weaker export demand amid ongoing global uncertainties and disruptions
linked to the West Asia conflict.

Despite the moderation, India continued to remain among the strongest-performing major economies in
global PMI rankings, supported by resilient domestic demand and relatively strong business activity
compared to several advanced economies. Manufacturing output and new business continued to expand,
although at a slower pace than earlier months. Services activity, however, showed relative resilience and
provided support to overall private sector growth.

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