India GDP Growth Below Expectations in Q3


The Indian economy expanded 6.3 percent yoy in Q3, above a 5.7 percent in Q2 which was the lowest in nearly 3 years, but below expectations of a 6.4 percent. A rebound in investment and inventories offset a slowdown in both private and public spending.

Gross fixed capital formation went up 4.7 percent, much faster than a 1.6 percent increase in the previous quarter and inventories jumped 6.7 percent, above 1.2 percent in the previous period. On the other hand, a slowdown was seen in household consumption (6.5 percent compared to 6.7 percent) and government spending (4.1 percent compared to 17.2 percent). Exports increased 1.2 percent, the same as in the previous period while imports rose at a much slower 7.5 percent (13.4 percent in the previous period). 

The Gross Value Added, that is, GDP excluding taxes, rose 6.1 percent year-on-year, above 5.6 percent in the three months to June. Faster expansion was reported for manufacturing (7 percent compared to 1.2 percent in the previous quarter), utilities (7.6 percent compared to 7 percent) and construction (2.6 percent compared to 2 percent) while mining recovered (5.5 percent compared to -0.7 percent). On the other hand, a slowdown was seen for trade, hotel, transport, communication & services related to broadcasting (9.9 percent compared to 11.1 percent); financial, insurance, real estate & professional services (5.7 percent compared to 6.4 percent) and agriculture, forestry & fishing (1.7 percent compared to 2.3 percent). 

India GDP Growth Below Expectations in Q3


Joana Taborda | joana.taborda@tradingeconomics.com
11/30/2017 3:34:25 PM