India’s Economic Performance Shows Signs of Deterioration in July 2024

As of July 2024, the Indian economy has demonstrated a decline in performance across several key economic indicators. A recent report by Mint highlighted that only six out of the 16 high-frequency indicators tracked were in the green, down from ten four months earlier.

The Mint macro tracker, which has provided insights into the economy since October 2018, reveals that the economic landscape has lost momentum since March. The analysis indicates that three indicators fell below their five-year average, while only six remained above it.

Despite this overall decline, the Indian economy experienced a slight improvement compared to the previous month, June. The consumer economy segment, in particular, shows signs of recovery, with only one of the four indicators now in red compared to all four being in red back in March.

However, it is noteworthy that the consumer economy indicators have not achieved green status in over a year, indicating that further progress is required. Conversely, the producer economy and ease of living segments have been performing well for an extended period.

The report also outlines that the methodology used to calculate the five-year averages excluded data from April-May 2020 and April-May 2021 to avoid distortions caused by pandemic-related lockdowns. Nevertheless, the data still reflects elevated figures due to residual effects from 2021 and 2022.

It is important to mention that the monthly standings will be updated as more data becomes available, and the color coding for inflation is reversed, with red denoting unfavorable conditions and green indicating positive trends.