Indian economic growth likely to have rebounded in December quarter

The Indian economic growth is expected to have recovered in the December quarter of 2017. According to a DBS Bank research report, the real GDP growth of Indian economy is likely to have come in at 7 percent year-on-year from the prior quarter’s 6.3 percent.

Lead indicators have been coming out well, with urban consumption rebound into the year-end, while consumption in rural moderated. PMIs rebounded from the post-GST lull, along with a rise in industrial production, mainly capital goods output.

Government revenue expenditure also accelerated to 24 percent year-on-year from 12 percent in the comparable period year before. Net external trade is likely to advance from stronger service sector receipts, even if the merchandise deficit widened on a bigger oil bill. GVA growth is expected to have come in at 6.6 percent from 6.1 percent.

“Non-agricultural growth likely improved due to better investment and service sector (including public administration and credit growth) indicators”, added DBS Bank.

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