A steady recovery in the manufacturing sector helped India climb two notches to the third position among key emerging markets in September The manufacturing growth reflected in the first year-on-year rise in exports in seven months, and the highest reading of the purchasing managers’ index in over eight years. In September, India’s merchandise exports rose 6% on-year to $27.6 billion. Exports had last shown a year-on-year rise in February, even before the World Health Organization declared covid-19 a pandemic. In April, the first full lockdown month, exports fell 60%, but the contraction had been easing since.However, the growth in September should be taken with a pinch of salt, given a low base. Among the other emerging markets that have reported their exports data for September, only China (10% growth) fared better than India. The rise in exports lifted India’s manufacturing PMI, which had already returned to the expansion path in August. The reading improved further to 56.8 in September, the highest since early 2012. The Indian rupee also appreciated 1.5% against the US dollar in September. With India’s coronavirus situation now improving and mobility returning to pre-pandemic levels, the focus has shifted to pacing up economic recovery. India’s relative performance against other emerging economies will depend on its ability to sustain domestic demand, as well as the gains made against the virus, even after the festive season has passed by.