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The Sales Managers Index: India

Updated: July 18, 2017

India’s Businesses Grapple with Change as Implementation of New Government Sales Tax Causes Major Challenges
  • The Headline Sales Managers’ Index reflects continuing fast growth despite GST uncertainty
  • Business Confidence slows but still very high indicating that upheaval is likely to be temporary
  • Price inflation spikes as inventory shortages push up prices in key sectors
  • 26% of Sales Managers are reporting GST as good for their business while 83% of companies indicate issues implementing GST in July

The Indian economy continued to expand strongly in July with a Headline Sales Managers’ Index (SMI) of 59.8, indicating fast growing levels of economic activity (although down on a year ago). The Government Sales Tax (GST), which came into force on the 1st July, has seen many businesses complain of set-up issues, low inventories and a significant fall in sales. As a result of stock shortages, small and mid-size companies especially are requiring new pricing guidance from manufacturers and the price of any existing stock has increased dramatically as consumers struggle to locate goods. However, the Business Confidence Index remained high in July indicating that the challenging business conditions exhibited this month will be short lived as businesses are expecting a return to normal once GST implementation problems are sorted out.

Sales Managers' Index (SMI)

The Headline Sales Managers’ Index (SMI) – a composite indicator designed to provide the most up-to-date assessment of business activity.

Business Confidence Index

The Business Confidence Index measures the level of optimism/pessimism amongst sales for future conditions.

Market Growth Index

The Market Growth Index monitors the underlying growth of the market segments into which the panel members sell.

Sales Growth Index

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

Prices Charged Index

The Prices Charged Index measures the speed and direction of changes in the current price of goods and services taking into account any discounts offered.

Staffing Levels Index

The Staffing Levels Index monitors the level of growth or decline in employment against the same period a year earlier.

About India SMI Data

The Sales Managers Index provide the earliest monthly data on the speed and direction of economic activity.

Key advantages of the India SMI:
  • The SMI provides the first indication each month of the speed and direction of economic growth in India.
  • The SMI provides the most complete indication of growth, covering all private sector activity.
  • The SMI is based on a key occupational group - uniquely able to sense changes in business activity levels.
  • The SMI is composite index of business confidence, market growth, sales, prices charged and staffing levels.
  • The SMI is a diffusion index, any index value above 50 indicates growth and below 50 indicates contraction.

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