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India was ranked 28th among 73 countries in 2018 Government e-Payments Adoption Ranking (GEAR). India has jumped by eight positions in this ranking from 36th in 2011 which reinforces country’s progress towards digital transformation. Norway has topped 2018 GEAR list scoring 89.7 points in seven categories.
It is an Economist Intelligence Unit (EIU) global Index and benchmarking study commissioned by financial services corporation Visa. It ranks governments by quantifying their e-payment capabilities based on various indicators. It evaluates extent to which major countries around world have adopted e-payment systems, based on digital platform. The ranking is based on seven parameters viz. Government-to-Citizen (G2C), Citizen-to-Government (C2G), Business-to-Government (B2G), Government-to-Business (G2B) transactions, infrastructure, socio-economic and policy environment.
India’s performance in 2018 GEAR
India leads B2G category, along with other countries like Australia, Singapore and South Korea. It also leads in G2B category as well, along with four other countries. It was ranked third C2G category, along with four other countries, while France and UAE has topped the list in this category. In G2C category, India still lags behind at 25th place. It was also ranked very low at 58th position in infrastructure and socio-economic categories. In the socio-economic category, India was ranked 60th out of 73 countries. In policy environment, it was ranked low at 40th.
According to Nikkei India Manufacturing Purchasing Managers Index (PMI), manufacturing activity improved in September 2018 on the back of stronger gains in new orders, output, and employment. The monthly PMI grew to 52.1 in September 2018 from 51.7 in August 2018. A reading over 50 on this survey-based index indicates expansion, anything below it reflects contraction.
The significant driver of growth in activity in September 2018 was growth in new orders. This strong growth was linked to gains in both domestic and foreign demand. The export sales has strengthened with net gain and best recorded since the start of the year. Moreover, high product quality was noted as factor supporting total new order book growth. However, the main concern is stronger US dollar compared to rupee as it continued to raise relative price of goods such as steel and fuel, thereby raising input costs for manufacturers.
Purchasing Managers’ Index (PMI)
PMI is an indicator of business activity-both in the manufacturing and services sectors. It is a survey-based measure that asks respondents about changes in their perception of some key business variables from month before. It is calculated separately for manufacturing and services sectors and then composite index is constructed. The index figure above 50 denotes expansion in business activity and anything below 50 denotes contraction. PMI is usually released at start of month, much before most of official data on industrial output, manufacturing and GDP growth is made available. It is, therefore, considered a good leading indicator of economic activity. Manufacturing growth measured by PMI is considered good indicator of industrial output.