India Economic Growth Weakens in Q3


India's GDP advanced faster than expected 5.3 percent in the third quarter of 2014, yet below 5.7 percent reported from April to June. The expansion was dragged down by weaker manufacturing while services growth remained strong.

In the third quarter of 2014, the highest growth rates were reported for: community, social and personal services (9.6 percent) and financing, insurance, real estate and business services (9.5 percent). 

According to the latest estimates available on the Index of Industrial Production (IIP), the index of mining and quarrying grew 1.9 percent (0 percent in Q3 of 2014), manufacturing expanded 0.1 percent (1.3 percent in Q3 of 2014) and electricity gas and water supply rose 8.7 percent (7.8 percent in Q3 of 2014). 

The growth rates in agriculture, forestry and fishing is estimated at 3.2 percent (5 percent in Q3 of 2013) and trade, hotels, transport and communication at 3.8 percent (3.6 percent in Q3 of 2014).

Construction advanced 4.6 percent, compared to 4.4 percent expansion reported in Q3 of 2013. The key indicators of construction sector: production of cement and consumption of finished steel registered growth rates of 9.8 percent and 0.3 percent, respectively.

Among the services sectors, key indicators of railways: the net tonne kilometers and passenger kilometers have shown growth rates of 6.3 percent and 1.1 percent, respectively. In the transport sector, the sale of commercial vehicles declined 3.8 percent while cargo handled at major ports; cargo handled by the civil aviation and passengers handled by the civil aviation registered growth rates of 4.3 percent, 11.6 percent and 12.6 percent. Total stock of telephone connections registered growth of 6.5 percent  The other key indicators: aggregate bank deposits, and bank credits have shown growth rates of 13.1 percent, and 10.1 percent, respectively.

India Economic Growth Weakens in Q3


Mospi | anna@tradingeconomics.com
11/28/2014 12:43:27 PM