Glossary · 10 terms
Economic Indicators
All economic indicators terms in the EquitiesIndia.com glossary — plain-English definitions written for Indian retail investors.
CPI(Consumer Price Index)
Consumer Price Index (CPI) measures the change in the average price level of a basket of goods and services consumed by households in India, serving as the primary benchmark for retail inflation and the official target measure for RBI's monetary policy.
Current Account Deficit(CAD)
Current Account Deficit (CAD) occurs when a country's total imports of goods, services, and transfers exceed its total exports, reflecting a net outflow of foreign exchange and indicating reliance on capital inflows to finance the shortfall.
Fiscal Deficit(Budget Deficit)
Fiscal Deficit is the shortfall between the Government of India's total expenditure and its total receipts (excluding market borrowings), expressed as a percentage of GDP, indicating the extent to which the government relies on debt financing to fund its spending.
Forex Reserves(Foreign Exchange Reserves)
Foreign Exchange Reserves (Forex Reserves) are the external assets held by the Reserve Bank of India, comprising foreign currency assets, gold, Special Drawing Rights (SDRs), and the reserve tranche position at the IMF, used to support the rupee and meet external payment obligations.
GDP(Gross Domestic Product)
Gross Domestic Product (GDP) is the total monetary value of all final goods and services produced within India's borders during a specified period, serving as the primary measure of the country's economic size and growth.
IIP(Index of Industrial Production)
Index of Industrial Production (IIP) is a monthly indicator published by India's NSO that measures the quantum of industrial output across mining, manufacturing, and electricity sectors, reflecting the growth momentum of the industrial economy.
PMI(Purchasing Managers Index)
Purchasing Managers' Index (PMI) is a survey-based leading economic indicator that measures the prevailing direction of economic trends in manufacturing and services sectors, with readings above 50 indicating expansion and below 50 indicating contraction.
Trade Balance(Merchandise Trade Balance)
Trade Balance is the difference between the value of India's merchandise exports and imports over a given period; a surplus indicates exports exceed imports, while a deficit (more common in India's case) indicates imports exceed exports.
Unemployment Rate(Jobless Rate)
The Unemployment Rate is the percentage of the labour force that is actively seeking employment but unable to find work, serving as a key indicator of labour market health and economic slack in the Indian economy.
WPI(Wholesale Price Index)
Wholesale Price Index (WPI) measures the change in prices of goods at the wholesale (producer or first point of sale) level in India, serving as a leading indicator of inflationary pressure in the supply chain before it reaches retail consumers.