• India’s economy expanded by 4.6% during the year to March quarter 2014; it increased 4.7% over the 2013-14 financial year.
• By industry, agriculture and financial services were the strongest performing; manufacturing and mining remained in recession.
• By expenditure, consumption and net exports have been the strongest. Investment detracted from growth.
• The strong net export performance helped to compress the Current Account Deficit to USD32.3bn, 1.7% of GDP.
• The RBI held the policy Repo rate at 8% in its latest meeting.
• The RBI also indicated that Foreign Portfolio investors will now be able to hedge their Indian exposures in the Domestic FX market.
• On growth, NAB is forecasting a 5.2% outcome for 2014, followed by a somewhat quicker 5.8% in 2015, an upgrade from the previous 5.6% estimate.
• We are also forecasting the RBI to remain on hold at 8% over the course of the 2014-15 Financial year, with risks evenly balanced.

For further analysis download the full report.

• India GDP (March Quarter) – June 2014 (PDF, 335KB)