Daijiworld Media Network – New Delhi
New Delhi, Jul 27: India's economic calendar this week will be dominated by key data releases on industrial production and foreign exchange reserves, alongside the government's Rs 20,000 crore bond buyback programme aimed at managing public debt.
The Index of Industrial Production (IIP) data, scheduled to be released on July 28, will offer fresh insights into the country's manufacturing and overall industrial activity.
Industrial output had expanded by 5.1 per cent in May, up from 4.9 per cent in April, recording the fastest growth in five months. The improvement was largely driven by robust growth in the electricity and gas supply sector.
The latest IIP figures also reflect a significant methodological revision. The Ministry of Statistics and Programme Implementation has replaced the Wholesale Price Index (WPI) with the Output Producer Price Index (Output PPI) as the deflator under the new 2022-23 base year series.
The revision covers 234 of the 463 item groups in the IIP basket and is intended to provide a more accurate picture of current industrial activity.
Also on July 28, the government will conduct a Rs 20,000 crore buyback of government securities through an auction managed by the Reserve Bank of India (RBI). The buyback will include four government securities maturing between October 2026 and February 2027.
The exercise is aimed at reducing repayment obligations ahead of maturity and improving the government's debt management. The auction will follow the multiple-price method, with the government retaining the flexibility to accept a higher or lower amount depending on prevailing market conditions.
Meanwhile, the RBI is scheduled to release India's foreign exchange reserves data on July 31, providing an update on the country's external financial position.
According to the central bank, forex reserves increased by $1.08 billion to $676.24 billion during the week ended July 17. The rise was mainly attributed to a $4.55 billion increase in foreign currency assets, the largest component of the reserves.
However, gold reserves declined by $3.48 billion during the same period, partially offsetting the overall increase.
The latest reserve figures will be closely watched by investors and policymakers for indications of currency stability and the RBI's capacity to manage external risks amid continuing global economic uncertainty.