India climbs to second position in emerging markets tracker, led by strong export growth

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Subscribe to enjoy similar stories. India's economic performance improved significantly among emerging markets’ (EM) peers, driven by a remarkable rebound in exports. Despite a tumultuous stock market and the depreciation of the rupee, the country's growth was fuelled by a 17% year-on-year increase in exports in October, marking a sharp recovery after months of sluggish performance.

India secured the second rank last month, steadily improving its position from sixth in August, showed the latest Mint'semerging markets tracker. Also read: Five years is a long time to live with 4Percent-plus inflation. It can leave a bitter taste. China reclaimed the first position after a gap of 18 months in October, with its currency and stock market performance best among the peers, bolstered by the country’s economic revival package towards the end of September.

In India, while gross domestic product (GDP), purchasing managers’ index (PMI) have been doing consistently well, exports growth gave the much needed boost in October. Exports grew 17% year-on-year in October, as opposed to contraction or tepid growth in the previous four months. Even though the rupee depreciated, its performance was better than currencies of most EM peers.

Meanwhile, Thailand slipped to third rank from first position as its stock market performance paled compared to China, despite recording an increase in its stock market capitalisation. Slight deterioration in PMI and exports growth also pulled its ranking down. Also read: Why retail investors continue to root for the underdogs Launched in September 2019, Mint’s Emerging Markets Tracker provides a summary of economic activity across 10 large emerging markets based on seven high-frequency indicators: real GDP