India Economic Outlook
December 18, 2017Recent data suggests that India’s economic recovery is gradually taking hold following a lackluster performance in Q1 FY 2017. The economy grew at a faster 6.3% in year-on-year terms in Q2 FY 2017—which runs from July to September—with the effects of demonetization and the implementation of the Goods and Services Tax (GST) gradually dissipating. Although the fourth quarter got off to a weaker start, with seasonal effects dragging on economic activity in October, stronger data for November, including auto sales and the manufacturing PMI, suggests that the economy remains on a recovery path. Meanwhile, Moody’s upgraded the country’s sovereign issuer ratings to Baa2 from Baa3 in mid-November. The ratings agency expects the government’s reform agenda to unleash India’s growth potential and help drive down the government debt burden over the medium term, thus warranting a higher credit rating.
India Economic GrowthGrowth is expected to accelerate further as recent fine-tuning measures on GST compliance, a large recapitalization plan for public banks and easing policy uncertainty all bolster the economy’s performance. The economy is expected to grow 6.6% in FY 2017, down 0.1 percentage points from last month’s estimate. This month’s downward revision largely reflects a slightly weaker-than-expected GDP figure in Q2 FY 2017. In FY 2018, panelists forecast growth of 7.4%.
India Economy Data
5 years of India economic forecasts for more than 30 economic indicators.
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|Bond Yield||7.03||-0.04 %||Oct 18|
|Exchange Rate||64.53||-0.09 %||Dec 06|
|Stock Market||32,597||-0.08 %||Oct 18|
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India Economic News
December 12, 2017
Industrial output grew at a softer pace in October due to one-off factors.
December 6, 2017
The Reserve Bank of India (RBI) kept its main interest rates unchanged at its meeting on 5–6 December as officials reinforced their neutral policy stance, stressing that they will “watch the incoming data carefully”.
December 5, 2017
The manufacturing sector showed robust signs of recovery in November, recording the strongest improvement in business conditions since October 2016.
November 30, 2017
The Indian economy made significant headway in the second quarter of FY 2017 as the impact of two major, but highly disruptive, reforms—the implementation of the Goods and Services Tax (GST) and demonetization—began to gradually fade away.
November 14, 2017
Merchandise exports contracted 1.1% from the same month of the previous year in October, to a total of USD 23.1 billion.