After a brief spell of relief in December, Indian economy dips again in January 2020

India’s economic growth card dipped again in January with 10 of 16 high-frequency indicators in red after showing signs of improvement in December, reported LiveMint

Out of the remaining six indicators, only three indicators were in green as of January while the other three remained in the red. January’s dismal performance has undone the improvements seen in December when six indicators were in the green and nine were in the red.

According to a report in LiveMint, the Mint macro tracker suggested that the economy is in worse shape as compared to a year ago when six indicators were in red, and six in green. It is also the eighth month in a row when at least half of the 16 indicators were in the red.

The Mint Macro Tracker, launched in October 2018, provides a monthly state-of-the-economy report based on trends in 16 indicators across four segments: consumer economy, producer economy, external sector, and ease of living.

The decline in January is largely on account of the external sector. Report card of the external sector worsened on three counts—the contraction in labour-intensive exports worsened to -8% in January from -3% a month ago, trade deficit (as per cent of total trade) widened to 23% from 17% and the rupee fell against the dollar (-0.2%), having appreciated last month (0.4%). Only the import cover (at 11.5) remained in green, reported Live Mint

All four indicators of the ease of living scorecard —CPI inflation (7.6%), core CPI inflation (4.2%), real rural wage growth (-2.1%) and job outlook (-1.6%)—have deteriorated compared to earlier months.