India’s economy grew just 5.3 per cent the past quarter, the rupee is taking a beating, and inflation is still high, leaving the central bank with little room to manoeuvre.We’ve written about India’s fiscal problems, but what’s behind the slowdown?
Drawing on a report by HDFC Securities’ analysts Sameer Narang and Vishal Modi we pulled together 8 charts to show the deceleration in the Indian economy.
And the slowdown has been sharp in the last four quarters, with GDP slowing from 8 per cent in June 2011 to 5.3 per cent the last quarter
HDFC has revised down their 2012 growth rate for India to 6.5 per cent driven by lower growth in industrial output and the service sector
Services slowed to 7.9 per cent in the fourth quarter led by slowdown in trade, hotels, transport and communication sub‐sector
Given high interest rates and weak external and internal demand industrial production is expected to stay soft
Manufacturing plunged to 2.5 year-over-year (YoY) growth in FY12, down from 7.6 per cent the previous year. It is projected to grow 3 per cent in FY13
Investment rate for 4QFY12 improved to 31.4 per cent of GDP from a low of 27.8 per cent of GDP in 3QFY12
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