Key Economic Data to Watch on February 21: PMI, Forex Reserves and MPC Minutes

India’s economy is showing steady growth, with real GDP expected to rise by 6.4% in FY25, supported by strong agricultural and service sectors. Fiscal discipline, a trade surplus in services, and growing remittances have contributed to economic stability, as highlighted in the Economic Survey 2024-25. The government’s fiscal policies and monetary strategies are now focused on boosting economic growth, as per reports.

On February 21 (Friday), several important economic indicators will be released, shaping the country’s growth outlook. These include manufacturing and services PMI data, foreign exchange reserves, and the Monetary Policy Meeting (MPC) Minutes.

Manufacturing PMI Data

The HSBC Flash Manufacturing PMI will be released on February 21. In January, India’s manufacturing activity showed a strong recovery, with the PMI rising to 57.7—its highest level in 6 months. This was a notable improvement from December’s 12-month low of 56.4.

Services PMI Data

India’s services PMI will also be released on February 21. In January, service providers reported slower growth, with the index falling to 56.5 from 59.3 in December, marking its lowest level since November 2022.

Foreign Exchange Reserves

India’s forex reserves have been steadily rising. The RBI reported that reserves increased by $1.51 billion, reaching $658.091 billion by November 29. As of January 31, forex reserves stood at $630.6 billion. The latest data will be released on February 21.

MPC Meeting Minutes

The minutes of the last Monetary Policy Committee (MPC) meeting will be published on February 21. In December, 2 members suggested reducing the repo rate by 25 basis points (bps) to 6.25%, citing slowing economic growth and easing inflation. During the February meeting, the RBI cut the key interest rate by 25 bps to 6.25%, maintaining a neutral policy stance.

These economic updates will provide insights into India’s financial health and future policy direction.

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