Neither GDP nor inflation… Trucks can reveal the state of a country’s economy, Here’s how

For example, in December 2024, the average rental cost for hiring a truck from Delhi to cities like Mumbai, Chennai, Kolkata, or Hyderabad and returning was around Rs 1,78,000.

Written by: Victor Dasgupta Edited by: Victor Dasgupta

Updated: March 31, 2025, 8:56 AM IST

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https://www.india.com/business/neither-gdp-nor-inflation-trucks-can-reveal-the-state-of-a-countrys-economy-heres-how-7720396/ Copy

New Delhi: Economists study the economy using a combination of theoretical models, empirical data analysis, and statistical techniques to understand how resources are allocated, how markets function, and how economic policies impact society. They use various methods to understand the economy. Starting from GDP (Gross Domestic Product) to inflation, which shows how much prices have risen compared to the past. While studying the economy, the experts examine the impact of the growth or decline of interest rates on savings, loans, and investments. However, these methods have some limitations. They often tell us what has already happened, which is why they are called ‘lagging indicators.’

It is important to note that these methods can be different for people to understand who are not well-versed in economics. But what if we tell you there’s an easier way to understand the economy without using complicated terms, and you can gauge the state of the economy just by observing trucks!

Trucks can indeed reveal a lot about the economic status of the country. When truck sales and rentals increase, it means companies are preparing for higher demand. When goods are being transported, it means that the production has spiked and the logistics operations are running at full speed. As the demand for logistics grows, truck rental prices also increase. On the other hand, when rental prices fall, it often indicates a slowdown in business activity.

For example, in December 2024, the average rental cost for hiring a truck from Delhi to cities like Mumbai, Chennai, Kolkata, or Hyderabad and returning was around Rs 1,78,000. In January 2025, this figure increased by 3 percent to Rs 1,83,000. This indicates that consumer goods are moving rapidly.

Here are some of the key details:

• The usage of trucks witnessed a major spike during the Maha Kumbh.
• Number of trucks used was five times higher compared to 2013.
• FMCG companies like Dettol, Dabur, PepsiCo, and Coca-Cola saw this as a great opportunity and distributed samples of their products.
• The spiked freight rates also indicate that agricultural activities are strong.
• Trucks provide insights into manufacturing and infrastructure as well.
• If freight rates rise due to increased fuel prices, it means that companies are willing to bear these costs because demand is strong.
• However, if freight rates remain stable or decline despite rising fuel prices, it could indicate that companies are struggling to pass on the higher costs to customers or absorb them.