India GDP Advances 7.3% in Q4


The Indian economy expanded 7.3 percent year-on-year in the last three months of 2015, slowing from an upwardly revised 7.7 percent growth in the previous quarter but in line with market expectations. The manufacturing sector surged 12.6 percent while farm output shrank 1 percent.

The manufacturing sector grew by 12.6 percent, more than a 9 percent rise in the previous period. Production in construction (+4 percent from 1.2 percent) and mining and quarrying (+6.5 percent from 5 percent) accelerated while the output for utilities grew 6 percent (7.5 percent in the third quarter). Activities in trade, hotels, transport, communication and services related to broadcasting went up 10.1 percent (8.1 percent in the previous period); financial, real estate and professional services increased 9.9 percent (11.6 percent in Q3); and public administration, defence and other services expanded 7.5 percent (7.1 in Q3). Farm output shrank 1 percent, after growing 2 percent in the previous period. 

On the expenditure side, private consumption went up 6.4 percent (5.6 percent in the previous period) and government spending grew 4.6 percent (4.3 percent in the previous period) while gross fixed capital formation growth slowed to 2.8 percent (7.6 percent in the previous period). Exports fell 9.4 percent (-4.3 percent in the previous period) and imports shrank 10.8 percent (-3.4 percent in the previous period). 

Figures for the third and second quarter of 2015 were revised upwards to 7.7 percent and 7.6 percent respectively (from 7.4 percent and 7 percent respectively earlier estimated). 

For the 2015/2016 fiscal year ending March of 2016, the government estimates growth at 7.6 percent, higher than 7.2 percent in the previous year.

India GDP Advances 7.3% in Q4


Joana Taborda | joana.taborda@tradingeconomics.com
2/8/2016 2:03:23 PM