India has slipped to the bottom among key emerging markets in November. This is despite reporting better GDP figures for September quarter, according to a report in the LiveMint. The ranking has been the worst since June.
The ranking indicates that India is finding it harder to regain lost ground compared to other emerging market in the world.For instance, exports had risen in September, but it contracted two months in a row now. However, several emerging markets have reported dip in exports during the pandemic months, but India’s numbers, 8.7% year-on-year contraction in November has been worse.Manufacturing purchasing managers’ index (PMI) has touched a three month low of 56.3, although it continued to show an expansion in November.
Despite the dip, PMI of India was still higher than all other emerging economies barring Brazil (64). A reading of over 50 denotes an expansion, reported LiveMint GDP contracted 7.5% in July-September, a significant improvement since the 23.9% contraction in the first quarter.
India’s stock market capitalization continued to grow for the seventh straight month, but the month-on-month growth (5%) was one of the lowest among emerging market peers. Thailand (13%) and the Philippines (12.7%) saw greater gains in their stock market capitalization.
Despite weak demand, India’s retail inflation remained elevated in November. At 6.93%, it showed signs of easing after the nine-month peak of 7.61% in October, but still remains much higher than peers. Only Turkey (14%) had higher inflation. While the RBI has continued with its accommodative stance, members of its monetary policy committee (MPC) flagged inflationary risks in their last meeting in early December.
