The economy continues to show signs of cooling, with GDP decelerating for a fourth consecutive quarter. In the January-March period the final quarter of the fiscal year 2011/12 GDP increased 5.3% over the same period last year, the slowest pace seen in nine years. The reading came in below both the 6.1% expansion observed in the previous quarter as well as market expectations of a 6.1% increase. The deceleration over the previous quarter was mainly due to slower growth in the manufacturing sector, which deteriorated from an already paltry 0.6% year-on-year increase in the third quarter to a 0.3% contraction in the fourth. In addition, the trade, hotels, transport and communication sector which represents over a quarter of the overall economy slowed down to a 7.0% expansion (Q3 2011/12: +10.0% yoy). Finally, the important agricultural sector expanded at a weak 1.7% pace (Q3 2011/12: +2.8% yoy). For the full fiscal year 2011/12, GDP increased 6.5%, a deceleration compared to the 8.4% growth rate recorded in 2010/11. The Central Bank anticipates GDP growth reaching 7.3% this fiscal year, which will end in March 2013, while the government sees the economy expanding 7.6%.
Economy expands at slowest pace in nine years
June 6, 2012
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India Economic News
October 17, 2016
Recently-released data related to India’s external sector showed that the trade deficit totaled USD 8.3 billion in September, which was a smaller shortfall than the USD 10.2 billion gap recorded in September 2015 (August 2016: USD 7.7 billion deficit).
October 15, 2016
In September, consumer prices fell 0.23% from the previous month, which followed August’s flat growth.
October 12, 2016
The fall in industrial production moderated in August, after recording the largest contraction since November 2015 in July.
October 5, 2016
Activity in India’s manufacturing sector lost steam in September.
October 4, 2016
The newly facelifted Reserve Bank of India (RBI) decided to ease monetary policy at a scheduled meeting on 4 October, cutting the repurchase rate from 6.50% to 6.25%—an over five-year low.