India Economic Outlook
November 14, 2017The economy is coming to terms with the disruptions caused by demonetization a year ago and the implementation of the Goods and Services Tax (GST) earlier this fiscal year. Consumption-related indicators have strengthened in recent months, while industrial output tracked higher in Q3 from the previous quarter. Nonetheless, GDP growth remains hampered by weak capital expenditure growth and a distressed banking sector. In a positive step, on 24 October the government unveiled a two-pillar stimulus package that encompasses a recapitalization plan for public sector banks worth USD 32.5 billion and a five-year USD 107 billion infrastructure investment program. In addition, authorities announced in early November a series of measures to lower the GST tax incidence on consumers as well as to reduce the compliance burden for firms.
India Economic GrowthDespite a tepid start to the fiscal year in April, economic growth is set to accelerate throughout FY 2017 as the economy recovers from demonetization- and GST-induced shocks. Economic momentum could be further bolstered by the new fiscal package, which will accelerate the resolution process of banks’ stressed assets, shore up loan growth and boost corporate sentiment. The economy is seen growing 6.7% in FY 2017, unchanged from last month’s estimate. In FY 2018, FocusEconomics 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.