CAPF AC 2025 Q21: Indian Economy – Infrastructure & Industry
Which one among the following financial institutions reports the monthly Purchasing Managers' Index (PMI) for services in India?
- (a) HSBC
- (b) RBI
- (c) HDFC
- (d) IDBI
Answer: (a) HSBC
Explanation
Who publishes the services PMI
How to think: the monthly Purchasing Managers' Index (PMI) for services in India is a private survey reported by a financial institution, not an RBI statistic.
For India, the monthly HSBC India Services PMI is compiled by S&P Global from a survey of private-sector firms.
| Report | Published by |
|---|---|
| HSBC India Services PMI | HSBC, compiled by S&P Global |
| HSBC India Manufacturing PMI | HSBC, compiled by S&P Global |
| Inflation data (CPI) | NSO (MoSPI) |
| Policy rate | RBI |
A reading above 50 shows expansion; below 50 shows contraction.
Answer: (a) HSBC.
Why each option is right or wrong
- (a) CORRECT. The HSBC India Services PMI is the monthly services survey.
- (b) Incorrect. The RBI does not publish the PMI.
- (c) Incorrect. HDFC does not publish the PMI.
- (d) Incorrect. IDBI does not publish the PMI.
Key point
PMI: above 50 = expansion, below 50 = contraction. India's PMIs: HSBC India Manufacturing and Services PMI, compiled by S&P Global; flash and final readings each month.
Remember
India PMI: HSBC (S&P Global); 50 is the dividing line.
Common mistakes
- Crediting the RBI with every economic indicator.
- Mixing the PMI up with the Index of Industrial Production, which is government data.
- Reading 50 as a measure of growth rate rather than expansion versus contraction.
Exam tip
Educated guess: among the four, only HSBC is known for a headline PMI series. RBI, HDFC and IDBI do other work.
Sources
- HSBC India Services PMI, monthly release compiled by S&P Global
- S&P Global, PMI methodology: how the Purchasing Managers' Index is compiled