India GDP (March Quarter) – June 2014

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.

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  • 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.

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