India’s policy and economic calendar this week will focus on trade talks with the US, industrial activity and the country’s external financial position.
Goyal likely to meet US trade representative
The G20 trade ministers’ meeting is scheduled for Wednesday and Thursday. Goyal is likely to travel to the US late Monday.
The US is also examining India’s trade practices under Section 301 of the US Trade Act, including allegations of excess capacity.
Industrial production data due on September 28
The government will release industrial production data for August on September 28.
India’s industrial output growth slowed to 6.7 per cent in July from an upwardly revised 8.8 per cent in June, according to the National Statistics Office (NSO). The July growth was 210 basis points lower than in June, with three of the four broad sectors recording slower growth.
The Index of Industrial Production (IIP) stood at 124.8 in July, compared with 117 a year earlier.
Manufacturing, electricity and gas supply, and water supply, sewerage and waste management recorded positive growth. Mining and quarrying, however, returned to contraction after growing in June.
Manufacturing output in focus
Manufacturing production data for August will also be released on September 28.
Manufacturing growth moderated to 7.3 per cent in July from 9.5 per cent in June. Of the 23 industry groups at the two-digit level, 19 recorded year-on-year growth. Electrical equipment production led the expansion with 28.3 per cent growth, followed by motor vehicles, trailers and semi-trailers at 22.2 per cent and machinery and equipment not elsewhere classified at 12.1 per cent.
Beverages and other transport equipment also recorded strong growth of 21.9 per cent and 22 per cent, respectively.
Four industry groups contracted in July. Pharmaceuticals declined 5.6 per cent, tobacco products fell 12.2 per cent, chemical products dropped 2.7 per cent and wearing apparel declined 0.6 per cent.
Manufacturing PMI final data on October 1
The HSBC India Manufacturing PMI fell to 52.8 in August from 53.5 in July. It was the lowest reading since August 2021 and below the long-run average of 54.2.
The PMI remained above the 50 mark, indicating an expansion in manufacturing activity. August also marked the 59th consecutive month of expansion. The final reading will provide a clearer picture of manufacturing activity in September after the flash estimate.
Forex reserves data due on October 2
The Reserve Bank of India (RBI) will release foreign exchange reserves data for the week ended September 25 on October 2.
India’s forex reserves fell by $14.881 billion to $765.901 billion in the week ended September 18, mainly due to a decline in foreign currency assets. Foreign currency assets, the largest component of the reserves, fell by $14.816 billion to $630.980 billion during the week.
The value of gold reserves, however, rose by $68 million to $111.292 billion.
Special Drawing Rights (SDRs) fell by $106 million to $18.739 billion, while India’s reserve position with the International Monetary Fund (IMF) stood at $4.89 billion.
