India’s economic activity remained stable in May from a month ago, a flash survey by HSBC Holdings Plc showed Thursday.

The manufacturing purchasing managers’ index fell slightly to 54.3 in May from 54.7 last month, while the services purchasing managers’ index held steady at 58.9 from 58.8 in April. The composite index also remained stable at 58.1 in May compared with 58.2 in April.

The indexes, reflecting business confidence in the economy, are based on preliminary surveys. The data may be revised when final PMI figures are released next month. A reading above 50 indicates expansion in economic activity, while a print below that indicates contraction.

“The Manufacturing PMI remained broadly in line with its long-run average, supported by continued inventory building,” said Pranjul Bhandari, chief India economist at HSBC, in a statement on Thursday.

India is struggling with an energy crisis caused by the nearly three-month-long war against Iran that the US and Israel launched in late February. In response, Iran effectively shut the Strait of Hormuz, a vital waterway for global energy flows — crimping supplies and sending Brent crude up more than 50% since the war started.

To limit the economic shock, India has raised fuel prices, curbed gold imports and tightened currency-market rules. In a rare public appeal this month, Prime Minister Narendra Modi urged citizens to cut fuel use and limit non-essential travel in an effort to conserve foreign exchange reserves.

“Growth across India’s private sector economy faded slightly halfway through the first fiscal quarter,” HSBC said in its statement. Weaker increase was seen in “total new orders, international sales, employment and business activity,” it added. 

The Reserve Bank of India is considering all options to stabilize the rupee, including an interest rate hike, more currency swaps and raising dollars from investors overseas, Bloomberg News reported Thursday. Top officials at the RBI, including Governor Sanjay Malhotra, have held a series of internal meetings to discuss the possible course of actions available after the rupee plunged to a fresh low of almost 97 to a dollar this week.

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Published on May 21, 2026