India GDP Growth Beats Forecasts in Q4

The Indian economy expanded 7.2 percent year-on-year in the last three months of 2017, well above an upwardly revised 6.5 percent advance in the previous period and beating market expectations of 6.9 percent. It is the strongest growth rate since the third quarter of 2016, boosted by a jump in investment and public spending.

Gross fixed capital formation surged 12 percent compared to a 6.9 percent rise in the previous period; stocks went up 6.9 percent, above 5.8 percent in Q3; and government spending expanded 6 percent, also higher than 2.9 percent in Q3. On the other hand, a slowdown was seen for private consumption (5.6 percent compared to 6.6 percent in Q3). Exports also rose less (2.5 percent compared to 6.5 percent) while imports growth accelerated (8.7 percent compared to 5.4 percent). 

Gross Value Added, that is, GDP excluding taxes expanded 6.7 percent, higher than 6.2 percent in Q3. Faster growth was recorded for agriculture, forestry and fishing (4.1 percent compared to 2.7 percent in Q3); manufacturing (8.1 percent compared to 6.9 percent); construction (6.8 percent compared to 2.8 percent); finance, real estate and professional services (6.7 percent compared to 6.4 percent); and public administration and defense (7.2 percent compared to 5.6 percent). On the other hand, slowdowns were recorded for utilities (6.1 percent compared to 7.7 percent); and trade, hotels, transport, communication and services related to broadcasting (9 percent compared to 9.3 percent); and mining and quarrying fell 0.1 percent after a 7.1 percent jump in Q3. 

Considering the 2016/2017 fiscal year (April 2016 to March 2017), the economy advanced 7.1 percent. For the 2017/2018 fiscal year, the government expectes growth at 6.6 percent, higher than an earlier estimate of 6.5 percent.

India GDP Growth Beats Forecasts in Q4

Joana Taborda |
2/28/2018 1:09:49 PM