Indian Economy Expands 7.3% YoY In Q3

India's gross domestic product advanced 7.3 percent year-on-year in the third quarter of 2016, following 7.1 percent expansion in the previous period and missing market expectations of 7.5 percent growth. Private consumption expanded at a faster pace while government spending slowed down and fixed investment dropped further.

Private consumption growth accelerated to 7.6 percent from 6.7 percent in the previous quarter while government spending rose at a slower 15.2 percent (+18.8 percent in Q2). Gross fixed capital formation shrank at a faster 5.6 percent, following a 3.1 percent contraction in the previous period.

Exports increased 0.3 percent, following a 3.2 percent growth in the second quarter; while imports declined 9 percent after falling 5.8 percent in the precedent period.

On the production side, the gross value added for public administration, defence and other services expanded the most (+12.5 percent vs +12.3 percent in Q2), followed by: financial, insurance, real estate and professional services (+8.2 percent vs +9.4 percent); manufacturing (+7.1 percent vs +9.1 percent); trade, hotel, transport, communication and services related to broadcasting (+7.1 percent vs +8.1 percent); electricity, gas, water supply and other utility services (+3.5 percent vs +9.4 percent); agriculture, forestry and fishery (+3.3 percent vs +1.8 percent) and construction (+3.5 percent vs +1.5 percent). By contrast, mining and quarrying contracted 1.5 percent (-0.4 percent in Q2).

Indian Economy Expands 7.3% YoY In Q3

Yekaterina Guchshina |
11/30/2016 1:13:57 PM