India’s economy expands 5.7% in Q2 01/09/2014

India’s economy expands 5.7% in Q2
01/09/2014 00:08
In a major boost to the recently elected BJP government led by the charismatic Narendra Modi, India’s economy expanded at the fastest pace in more than two years last quarter helped by a revival in investment amid a strong political mandate and hopes of key reforms, signaling a turnaround in fortunes for Asia’s third biggest economy. Gross Domestic Product (GDP) expanded by 5.7 per cent in the April-June quarter of FY 2014-15 from the same period a year ago, the fastest pace of expansion since the last quarter of FY 2011-12, government data showed on Friday. Analysts were expecting India’s economy to expand by 5.5 per cent in Q1 FY 2014-15 from the same period a year ago. In Q4 FY 2013-14, the economy grew by 4.6 per cent from the same period a year ago. The latest data means that the economy has bounced back into the 5 per cent plus growth trajectory while implementation of key reforms promised by the Modi government will provide a further impetus to growth, going forward. Manufacturing output grew 3.5 per cent in Q1 FY 2014-15, compared to a 1.2 per cent contraction in Q1 FY 2013-14. The mining sector grew by 2.1 per cent in Q1 FY 2014-15. Gross fixed capital formation, a proxy for asset creation and investment surged by 7 per cent in Q1 FY 2014-15.

Moody’s expects India’s economy to grow 5% in 2014 13/08/2014

Moody’s expects India’s economy to grow 5% in 2014
13/08/2014 17:21
Leading global rating agency Moody’s said in a report that it expects the Indian economy to grow at a rate of 5 per cent in 2014 with growth tipped to pick up in the coming year as a new government aims to kick-start structural reforms and accelerate infrastructure investment. Asia’s third biggest economy has grown below the 5 per cent mark for the past two fiscal years. The rating agency expects the Indian economy to grow by 5.5 to 6 per cent in 2015. The Economic Survey pegs India’s economic growth in the current fiscal year at 5.4 per cent to 5.9 per cent. "The growth outlook is more robust for India and Indonesia. For both countries, we forecast GDP growth of around 5 per cent this year, rising to around 5.5-6 per cent in 2015," Moody's said in its report 'Global Macro Outlook 2014-15: "For India in particular, the projected growth rates are still significantly below pre-crisis and well short of the new government's target to raise growth to 7-8 per cent by 2017-18," the report said. India’s growth hopes are pinned upon the new government’s ability to live up to its much-awaited reform process including long pending labour market and tax reforms.

World Bank expects India’s economy to grow 5.5% in FY 15 23/06/2014

World Bank expects India’s economy to grow 5.5% in FY 15
23/06/2014 00:17
The World Bank has predicted that the Indian economy will accelerate in the current fiscal year with the new government expected to take strong measures to revive growth and kick-start long stalled economic and structural reforms.
The global lender expects Asia’s third biggest economy to expand by 5.5 per cent in FY 2014-15, rebounding to above 5 per cent growth for the first time in three fiscals.
India’s economy grew by 4.7 per cent in FY 2013-14, the second straight fiscal of below 5 per cent expansion.
In FY 2015-16, India’s economic growth is tipped to accelerate to 6.3 per cent and to 6.6 per cent in FY 2016-17.
Big-bang reforms including introduction of GST and DTC, elimination of bottlenecks, liberalization of FDI norms, and reduction of costs of doing business may bolster foreign investment and business spending, lifting economic growth.
The biggest challenge for the new government will be to achieve fiscal consolidation. This can be achieved by the implementation of GST, cutting down on fuel, food and fertilizer subsidies, and broadening the tax base.
“Removing bottlenecks in energy supply, improving the business climate, and unlocking stalled PPP contracts are some of the key areas that could be addressed in the short term to bring India back to a high growth trajectory”, the World Bank said.