India’s economic momentum remained broadly stable at the start of 2026, with the latest reading of the Moneycontrol Economy Pulse standing at 51.2 for January 2026, slightly lower than 51.4 recorded in December 2025. A reading above 50 indicates strengthening economic momentum, while a figure below 50 signals moderation, suggesting the economy continues to remain in the expansion zone despite emerging concerns.

According to a press release from the company, the Moneycontrol Eco Pulse is a high-frequency composite indicator that aggregates a wide range of monthly economic and business indicators spanning consumption, industry, mobility, trade, financial activity and labour market conditions, offering an early view of economic direction.

The January reading indicates that economic activity continues to expand despite evolving domestic and global conditions. While some moderation is visible compared with December, the index remains comfortably in expansion territory, reflecting resilient underlying demand and steady activity levels. The December figure was revised downwards due to data revisions in existing indices and the addition of new indicators tracking economic momentum.

The updated index now incorporates nearly 40 indicators, including diesel consumption, unemployment rate, female labour force participation and youth unemployment. It will also track core and food inflation categories, along with rail and air freight data, which are released with a two-month lag. High-frequency indicators for January show mixed but broadly stable trends, with consumption-linked signals supporting overall momentum, even as external demand indicators remain uneven and infrastructure expansion slowed during the month.

For the December quarter, the high-frequency data suggests continued expansion in economic activity, although the pace of year-on-year GDP growth may moderate due to base effects from the corresponding quarter of the previous year. Economic momentum had slowed in October, but activity levels in November and December indicated a recovery from the earlier dip.

Data across sectors shows a varied picture of growth drivers and pressures. Goods and Services Tax collections rose 6.2 percent year-on-year in January to Rs 1.93 lakh crore, while two-wheeler and tractor sales recorded strong growth, signalling rural resilience. However, car sales growth slowed and diesel demand also softened. On the industrial front, purchasing managers’ index data showed improvement in business activity conditions, but key indicators such as diesel consumption, electricity demand and e-way bill generation — proxies for industrial momentum — recorded slower growth.

External sector indicators also reflected weakness, with exports expanding just 0.6 percent year-on-year and cargo handling at major ports easing during the month. Labour market data remained a concern, as both urban unemployment and youth unemployment increased in January, pointing to uneven recovery trends.

The index is designed to capture changes in economic momentum rather than replicate GDP growth levels. It has historically tracked key turning points in India’s growth cycle, including the contraction during the pandemic and the subsequent recovery phase. Because it relies largely on realised economic data instead of survey-based responses, the index offers a complementary perspective to traditional business sentiment indicators and official GDP figures.

By combining multiple high-frequency indicators into a single monthly measure, the Moneycontrol Eco Pulse aims to provide policymakers, market participants and businesses with an early signal of economic direction ahead of official quarterly GDP data.

The index will be released at the end of every month to provide timely insights into India’s evolving economic landscape, the statement said.