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Indian Economy Continues to Grow in May

Serious damage caused by Covid remains evident
The First Data on Economic Activity Levels in India - Every Month
The only survey with current month, month-on-month, monthly year-on-year, and forward looking questions

Updated: May 25, 2022

The May Sales Managers Survey results show the Indian economy continuing to climb out of the damage caused by the Covid epidemic.

The Sales Growth Index, reporting on month-on-month growth in companies in the survey, showed further firm upward movement. This index, together with the Market Growth and Business Confidence Indexes all now reflect growth. But growth overall across both Manufacturing and Service sectors remains very modest, and the data suggests that there is now buoyancy in some sectors, but many remain mired in supply chain problems and other after effects of Covid.

Firm upward movement reflects modest economic growth in India

Sales Growth Index
Source: World Economics
Note: Data Shown as a Diffusion Index. (50 = 'No Change', above 50 = Increasing growth, below 50 = Declining growth)
0 0 0 United States Staffing Levels Index|#0A66C2|59.7, 59.5, 57, 58, 61.5, 63.6, 60.2, 61.6, 58.7, 56.1, 55.9, 57.6, 58.3, 58.6, 56, 55.1, 53.9, 53.3, 53.2, 54.8, 43.1, 20.6, 30.4, 38.5, 41, 44.8, 46.3, 47.5, 50.7, 51, 50.6, 50.7, 50.3, 49.7, 49.4, 48.5, 48.6, 49.7, 51.6, 52.7, 50.6, 49.7, 50, 50.7, 51.8, 51.4 Aug 2018, Sep 2018, Oct 2018, Nov 2018, Dec 2018, Jan 2019, Feb 2019, Mar 2019, Apr 2019, May 2019, Jun 2019, Jul 2019, Aug 2019, Sep 2019, Oct 2019, Nov 2019, Dec 2019, Jan 2020, Feb 2020, Mar 2020, Apr 2020, May 2020, Jun 2020, Jul 2020, Aug 2020, Sep 2020, Oct 2020, Nov 2020, Dec 2020, Jan 2021, Feb 2021, Mar 2021, Apr 2021, May 2021, Jun 2021, Jul 2021, Aug 2021, Sep 2021, Oct 2021, Nov 2021, Dec 2021, Jan 2022, Feb 2022, Mar 2022, Apr 2022, May 2022




The Jobs, Profits and Prices Indexes produced the most negative results.

The Jobs Index advanced significantly compared with the levels seen in April, but remains below the levels a year ago and way below the 50 level, indicating continuing reluctance to increase investment in staff, given the continuing business uncertainty.

The Profits Index rose significantly month-on-month, but again remains under the 50 mark seperating growth from decline.

Finally the Prices Index remained high and rose once again, indicating strong inflationary pressures remain in the Indian economy.

Strong inflationary pressures remain in the Indian economy

Prices Charged Index
Source: World Economics
Note: Data Shown as a Diffusion Index. (50 = 'No Change', above 50 = Increasing growth, below 50 = Declining growth)
0 0 0 United States Staffing Levels Index|#0A66C2|51.6, 56.8, 54, 54.5, 56.7, 53.4, 50, 51.2, 54.3, 58.6, 59.9, 62.5, 59, 59.4, 57.5, 57.8, 58.1, 58, 59.3, 58.6, 54.3, 32, 35.2, 42.9, 46, 51.6, 52.5, 56, 57, 54.9, 50.3, 53.1, 52.7, 53.9, 54.8, 51.2, 53.2, 53.8, 55.7, 56.8, 55.2, 57.1, 54.3, 56.1, 55, 55.3 Aug 2018, Sep 2018, Oct 2018, Nov 2018, Dec 2018, Jan 2019, Feb 2019, Mar 2019, Apr 2019, May 2019, Jun 2019, Jul 2019, Aug 2019, Sep 2019, Oct 2019, Nov 2019, Dec 2019, Jan 2020, Feb 2020, Mar 2020, Apr 2020, May 2020, Jun 2020, Jul 2020, Aug 2020, Sep 2020, Oct 2020, Nov 2020, Dec 2020, Jan 2021, Feb 2021, Mar 2021, Apr 2021, May 2021, Jun 2021, Jul 2021, Aug 2021, Sep 2021, Oct 2021, Nov 2021, Dec 2021, Jan 2022, Feb 2022, Mar 2022, Apr 2022, May 2022




In total, a set of results reflecting an economy still struggling to recover from the problems of the last two years, but gradually moving towards recovery.







About the Sales Managers Indexes

The Sales Managers' Indexes provide the earliest monthly data on the speed and direction of economic activity in key growth areas of the world.

The SMI’s (Sales Managers’ Indexes) are compiled and analysed by World Economics and are based on survey data collected from a panel of companies stratifying all Industry Classification Board (ICB) sectors which are weighted to reflect their contribution to national Gross Domestic Product.

Key advantages of the SMI's:

  • The SMI's provide the first indication each month of the speed and direction of economic growth.
  • The SMI's provide the most complete indication of growth, covering all private sector activity.
  • The SMI's are based on a key occupational group - sales executives - uniquely able to sense accurate changes in business activity levels.
  • The SMI survey base - salespeople - are used by virtually all businesses, including in frontier markets, unlike other occupational groups.
  • The SMI's focus on the key countries contributing to over 60% of global growth in recent years.






About the Data

SMI data for India is published as diffusion indexes to gauge the speed and direction of economic activity.

Monthly data since 2014 is downloadable for all-sectors in a consistent unadjusted format for 7 key indexes: