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India better from here: Jan-Mar GDP growth steady

HSBC Global Research, said that, GDP growth was unchanged and broadly in-line with expectations

June 02, 2014 12:25 IST | India Infoline News Service
India's economy was stuck in low gear last quarter, expanding 4.6% y-o-y, the same as over the previous three months. The upswing in agriculture was offset by weaker services, while stronger personal consumption and net exports were not enough to spur demand amid weaker investment and government spending. True, the outlook for growth has improved considerably since the BJP's election victory. But the latest GDP figures are a reminder of the steep challenges facing the new government. Even if the low point may be past us, the recovery will likely prove only gradual.
India's GDP growth was unchanged at 4.6% y-o-y in Q4 FY2013-14 (vs. 4.6% in Q3), roughly in line with expectations. On a sequential basis, growth momentum picked up a touch (1.1% q-o-q sa vs. 0.8% in Q3).
Frederic Neumann, Co-Head of Asian Economic Research, HSBC Global Research, said that, GDP growth was unchanged and broadly in-line with expectations. It will likely accelerate over the coming quarters following the BJP's election victory. But, with supply-side measures being implemented only gradually over time, this could also mean a rebound in inflation and a wider external deficit. The road ahead will remain bumpy.

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