India's economy likely bottomed out

India's GDP for the third quarter year on year basis is likely to rise to 7.3, as per consensus expectations, slightly higher than that of previous month's 7.0.

India's economy might have bottomed out. Apart from low oil prices, weakness in demand means consistently lower inflation for manufactured goods. Weak capacity utilization data also reflects the weakness in manufacturing.

"We expect India's Q2 FY16 GDP to clock growth of 7.2% yoy, somewhat higher than the 7.0% yoy recorded in the previous quarter. Overall, however, we expect a slow recovery of the economy", says Societe Genrale in a research note.