india-slips-to-6th-in-emerging-markets-tracker

India has slipped to the sixth position among emerging market peers in February, according to the latest Mint's Emerging Markets Tracker.

 

The drop from the previous month's third position has been attributed to a combination of economic setbacks, including a decline in the stock market, a significant depreciation of the rupee, and a slump in exports.

 

Brazil secured the top spot on the tracker for the first time since November 2023, demonstrating robust performance across several economic indicators.

 

The Brazilian real appreciated by 4.5% on a month-on-month basis, and the country's stock market managed to recover from the losses recorded in the previous month. Brazil's strong currency performance and its impressive stock market recovery contributed to its rise in the rankings.

 

China claimed the second rank, advancing three positions, driven by decent GDP growth, low inflation, and a stable stock market. The nation also recorded the best import cover among its peers, further bolstering its standing.

 

Thailand's re-entry into the top three after a gap of four months was marked by notable gains in its stock market and steady export growth. However, its performance was slightly hampered by a weak manufacturing PMI.

 

India's economic performance in February faced considerable challenges. The average monthly market capitalization of the Indian stock market fell by 14.6% month-on-month, and exports declined by nearly 11% year-on-year.

 

Although the rupee's depreciation slowed, it remained one of the worst-performing currencies among emerging markets during the period.

 

The Mint's Emerging Markets Tracker, launched in September 2019, evaluates the economic performance of nine large emerging markets using seven high-frequency indicators.

 

These indicators include real GDP growth, manufacturing PMI, export growth, retail inflation, import cover, exchange rate movement, and stock market performance. Each country is assigned a composite score based on its performance across these indicators.

 

It is essential to note that the current rankings are provisional, as some data points may be updated once the latest information becomes available. Russia, which was previously part of the tracker, has been temporarily excluded due to a lack of reliable data following the onset of the Russia-Ukraine conflict.