India – What else would you expect from a country whose economy bounced back in the final quarter of 2017, thus advancing of China to record the speediest rate of growth among the world’s greatest economies.
Information for the December quarter, released the previous evening Australian time, indicated feature GDP growth rose to 7.2%, up from 6.5% in the past quarter.
China recorded relative Q4 growth of 6.8%, and the most recent information on manufacturing activity from the Chinese government demonstrated a sharp log jam in February.
The outcome denotes an arrival to frame for India’s economy, which fell behind China in the course of recent months following two financial occasions which delayed growth.
In November 2016, the economy reeled after Indian authorities removed 500 and 1,000-rupee notes from circulation as part of a crackdown on tax evasion.
That was followed by the introduction of a goods & services tax last July, which was the catalyst for a sharp contraction in manufacturing activity.
Along with the increase in headline GDP, the gross value added measure stood at a reading of 6.7% up from 6.2% in the previous quarter.
Chinese manufacturing activity has slowed in recent months. Thomson Reuters
Gross value added is seen as a more accurate measure of growth as it removes the impact of indirect taxes and subsidies, according to Bloomberg.
India’s headline GDP growth is now expected to grow by 6.6% in the year-ending March 2018 — an upward revision of 10 basis points from the 6.5% forecast in January.
The latest increase was driven by faster growth in the agriculture and construction sectors, while the contribution of the mining sector contracted slightly.
Amid a slightly improved growth outlook and some upside risk to inflation, India’s central bank is expected to keep benchmark interest rates on hold at 6% in the near-term.
India’s Nifty50 stock index closed 0.58% lower yesterday to finish down by around 4.9% for the month of February.