Indian GDP growth for the first quarter of the financial year came in at 5.7 percent, largely beating expectations and the highest in the last 10 quarters.
This is the highest GDP growth recorded since the fourth quarter of FY12.
This is only the second quarter of above 5 percent growth since early 2012.
Economic growth was forecast to have picked up to 5.3 percent between April and June, according to a Reuters poll of 40 economists, sharply higher than 4.6 percent in the previous quarter.
The improvement in the GDP figures is largely due to the steps taken by the previous government to kick-start capital investments and spur consumer demand. Those measures aided industrial production and vehicle sales.
The year-on-year growth has been helped also by a favourable statistical base because of weak economic activity last year.
But, there is little doubt that Modi's election - he won the first outright parliamentary majority in three decades - improved sentiment among consumers, investors and the business community.
Months before Modi's victory, investors poured money into India confident that the business focused leader would win.
Since taking office, Modi has initiated measures to minimise tax litigation, loosened caps on foreign investment in railway infrastructure and defence manufacturing, speeded up regulatory approvals and reduced bureaucratic discretion.
Quarterly GDP growth, YoY in %
Q1-FY15
2
5.7
4
4.5
Q1-FY13
4.6
Q2-FY13
4.4
Q3-FY13
4.4
Q4-FY13
4.7
Q1-FY14
5.2
Q2-FY14
4.6
Q3-FY14
4.6
Q4-FY14
5.7
Q1-FY15
Foreign capital inflows to India have risen markedly, making Indian shares the best performers in Asia this year.
A recovery in industrial production, along with improvements in exports has led to a raft of upward revisions in the growth forecasts for the fiscal year to March 2015. This week Nomura upgraded its estimate to 6 percent from 5 percent earlier.
with inputs from Reuters
0 comments:
Post a Comment