India GDP Growth at Over 3-Year Low of 5.7% in Q2


The Indian economy expanded 5.7 percent year-on-year in the second quarter of 2017, below 6.1 percent in the previous period and market expectations of 6.6 percent. It remains the weakest growth rate since the first quarter of 2014 due to a slowdown in consumer spending and exports. On the production side, manufacturing and agriculture eased. Figures for the second quarter of 2017 mark the third consecutive period of slowing growth, following the demonetization program started in November of 2016 that removed 86 percent of India's currency in circulation.

Year-on-year, lower growth rates were recorded for private spending (6.7 percent compared to 7.3 percent in the previous period); government consumption (17.2 percent compared to 31.9 percent) and exports (1.2 percent compared to 10.3 percent) while imports rose at a faster 13.4 percent (11.9 percent). On the other hand, gross fixed capital formation rose 1.6 percent, following a 2 percent drop in the first three months of the year.

The Gross Value Added, that is, GDP excluding taxes, increased 5.6 percent year-on-year in Q2 of 2017, the same as in the previous quarter. Mining and quarrying shrank 0.7 percent (+6.4 percent in the previous qurter) and slowdowns were recorded for manufacturing (1.2 percent compared to 5.3 percent); agriculture (2.3 percent compared to 5.2 percent) and public administration and defence (9.5 percent compared to 17 percent). On the other hand, faster increases were recorded for trade, hotels, transport and communication (11.1 percent compared to 6.5 percent); financial and real estate activities (6.4 percent compared to 2.2 percent) and utilities (7 percent compared to 6.1 percent).

India GDP Growth at Over 3-Year Low of 5.7% in Q2


Joana Taborda | joana.taborda@tradingeconomics.com
8/31/2017 12:31:02 PM