New Delhi . There is good news for the Indian economy moving towards V-shape recovery. India crossed the 5 position mark in January to rank third in the Emerging Markets list. Rising exports, falling inflation and strong growth in production activities have increased India’s ranking in January. However, India is still two places below the neighboring country of China. India’s merchandise exports in January were up 6.2 percent year-on-year to $ 27.45 billion. In January, there has been an increase in exports for the second consecutive month.
Japanese financial holding company Nomura has said in its note based on India’s provisional export figures that the country’s exports in January have been in line with global trade. Along with the increase in volume, the country’s exports have also benefited from the global increase in commodity and input prices.
Manufacturing PMI at the highest level –
India’s manufacturing purchasing managers’ index (PMI) rose to a 3-month high of 57.7 in January, the best among emerging markets, due to a sharp increase in production, sales and exports in January.
Stock market capitalization also increased –
The financial market of the country also boomed with the expectation of growth rate. India’s stock market capitalization in January increased 6 percent compared to December. Only Turkey (11.1 percent) and China (7 percent) performed well in this sector.
Fall in inflation –
The drop in inflation numbers has also helped India to occupy the top spot in the Emerging Markets list. Food inflation declined to 1.9 percent with the inflation rate coming down to 1.9 percent. Although core inflation is at a high level.
Emerging Market Trekker launched last year-
The trekker was launched by an English newspaper in December last year. It uses 4 high frequency indicators such as PMI, real GDP growth, currency exchange rate fluctuations and capitalization of the stock market to check the health of the economy of emerging markets. It consists of 10 large emerging markets. This shows the health of the country’s market compared to emerging markets.