• The Indian economy expanded by 7.9% over the year to March quarter 2016. India is now the world’s fastest growing major economy.

• This was a consumption-led story, with consumption contributing 4.9%, or 62% to the overall outcome.

• Services (primarily financial, trade, professional and business services) was the best performing industry sector.

• The high statistical discrepancy does raise some concerns about the quality of the data release.

•  Industrial production is forecast to accelerate to around 5% by the second half of the year; it is currently flat.

• Equity markets have recently reached a 2016 high, assisted by strong growth in corporate profits.

• NAB Economics is forecasting 7.7% growth in 2016 and 2017.

•  A further 25bp cut is expected in the Repo rate in the December quarter, bringing it down to 6.25% b

For further analysis download the full report.

• India GDP:  June 2016 (PDF, 1MB)