World Economics

June Sales Data Shows Indian Economy in Dire Straits

All Indian Sales Indexes reflect the continuing widespread damage done to the Indian economy by Covid -19. The rise in June in all the indexes from the low points of May does not reflect an improvement in economic activity, as all stay well below the 50 "no growth " line. The rising lines show only that the descent into recession has slowed a little. To illustrate in more graphic terms, the lift is still falling, but not quite as fast as it was falling in May.

The Market Growth Index reading of 31.5 shows the massive and widespread impact of Covid-19 in the Indian economy, spread over many different kinds of industry sector.

The Sales Growth Index reading, at just over the 30 mark, illustrates the rate of decline compared with the previous month, and shows that economic activity plummeted in June for the third consecutive month. Perhaps not yet a recession in the technical terms of the academic economist, but a disaster augmented by the chaotic Government response, for many of the people living through the crisis.

Worst of all, the Staffing Index remains under the 30 level, reflecting far lower staffing levels than the situation of one year ago. Millions of people have been laid off in one way or another, and left with perilously few means of earning a living.

India: Sales Growth Index’ Index (SMI)

The Sales Growth Index defines the speed and direction of overall sales of goods and services made by business during the month.

Access Indian SMI Charts & Data