India GDP Growth Highest in Over 2 Years


The Indian economy grew 8.2 percent year-on-year in the second quarter of 2018, above 7.7 percent in the previous three months and beating market expectations of 7.6 percent. It is the strongest growth rate since the first quarter of 2016, boosted by household spending, financial, real estate and manufacturing activities.

Faster increases were seen in household spending (8.6 percent compared to 6.7 percent in Q1) and inventories (8.6 percent compared to 7.8 percent). Also, exports jumped 12.7 percent, much higher than a 3.6 percent rise in the previous period. Imports also increased at a faster 12.5 percent (10.9 percent in Q1). On the other hand, government consumption (7.6 percent compared to 16.8 percent) and gross fixed capital formation (10 percent compared to 14.4 percent) slowed. Household spending accounted for 54.9 percent of the GDP; gross fixed capital formation for 31.6 percent; public expenditure for 11.8 percent; and changes in stocks for 0.7 percent. Exports accounted for 21.4 percent while imports subtracted 24.7 percent.

Gross Value Added, that is, GDP excluding taxes expanded 8 percent, higher than 7.6 percent in Q1. Faster growth was recorded for financial, real estate and professional services (6.5 percent compared to 5 percent in Q1); manufacturing (13.5 percent compared to 9.1 percent); and agriculture, forestry and fishing (5.3 percent compared to 4.5 percent). On the other hand, a slowdown was recorded for trade, hotels, transport, communication and services related to broadcasting (6.7 percent compared to 6.8 percent); public administration and defense (9.9 percent compared to 13.3 percent); construction (8.7 percent compared to 11.5 percent); mining and quarrying (0.1 percent compared to 2.7 percent); and utilities (7.3 percent compared to 7.7 percent). Financial and real estate activities were the biggest sector of the economy (24.1 percent), followed by internal trade (18.9 percent); manufacturing (18 percent); agriculture (13.3 percent); public sector (12.4 percent); construction (7.9 percent); mining (3.2 percent) and utilities (2.3 percent). 

India GDP Growth Highest in Over 2 Years


Joana Taborda | joana.taborda@tradingeconomics.com
8/31/2018 1:00:04 PM