Economic Indicators (as on March 28, 2025)

Inflation in India (%)

Consumer Price Index eases to 7-month low to 3.61% in Feb’25 from 4.26% in Jan’25 primarily due to a slowdown in food and beverage inflation. Wholesale Price Index (WPI) increased to 2.38% in Feb’25 from 2.31% in Jan’25 due to the rise in prices of fuel and power.

Index of Industrial Production (%)

Index of Industrial Production (IIP) grew by 5% in Jan’25 from 3.5% in Dec’24 as manufacturing and mining supported growth. The manufacturing sector, which accounts for major part of the IIP, grew by 5.5%, while the mining and electricity sectors recorded growth rates of 4.4% and 2.4%, respectively.

Indian Business Indicators - Purchasing Managers' Index (PMI)

S&P Global India Manufacturing Purchasing Managers' Index (PMI) increases to 8- month high of 58.1 in Mar’25 from 56.3 in Feb’25. The rise was driven by stronger new orders growth, as the New Orders Index reached its highest level in eight months, supported by increased customer interest, favourable demand conditions, and successful marketing initiatives. PMI Services dropped to 57.7 in Mar’25 from 59 in Feb’25. The slowdown reflected a softer increase in services activity, though factory production rose. The reading remains in the expansion zone, as a score above 50 indicates expansion, while a score below 50 denotes contraction.

USD INR & Brent Crude Movement

Brent crude oil increased marginally to US$ 74.74 on Mar'25 end from US$ 73.18 on Feb'25 following the release of industry data indicating a larger than-expected decline in U.S. crude oil inventories. The Rupee closed the month on 85.4625 against Greenback as on Mar'25.

Equity Markets - India & US

Bellwether indices, Nifty 50 and S&P BSE Sensex moved up sharply during the month by 5.76% and 6.30% respectively amid broad-based buying across sectors and rupee's rebound from its recent record lows. Gains were extended after the U.S. Federal Reserve, in its Mar’25 monetary policy meeting, maintained the interest rate and signalled the possibility of two rate cuts by the end of the year. Foreign Institutional Investors (FIIs) were net sellers in Indian equities to the tune of ` -3972.62 crore. Gross Goods and Services Tax (GST) collections in Feb’25 stood at 11-month high of Rs. 1.96 trillion, representing a 9.9% rise on a yearly basis and this points towards the growing trajectory of the Indian economy. Dow Jones decreased sharply by -4.20% from previous month.

Interest Rate Movement (%) - India & US

Yield on the 10-Year benchmark paper decreased, closing at 6.582% on Mar'25 vs 6.729% on Feb'25 due to anticipation of a rate cut by the RBI in its Apr'25 monetary policy meeting. There was significant buying interest, primarily from banks that have made substantial room in their portfolios following aggressive debt acquisitions by the RBI contributed to the decline. US 10 year G-Sec closed lower at 4.2053 on Mar’25 vs 4.2082 on Feb’25.