India:Core Industries Grew at Lesser Rate in October Vs. September, Recovery Likely to Remain Uneven

India Q2 GDP: Much Needed Relief - Yes; Cause for Celebration - No

Economist

Richard Iley

Macroeconomics

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<p>India's Q3 GDP data were better, but still some way from good. Gross Valued Added (GVA) growth picked up to 6.1% y/y from Q2's desperately disappointing 5.6% y/y but is still a long shy of the economy likely potential growth rate of c.7.5% per annum. </p>
<p>Headwinds from the agricultural sector and government spending were expected while restocking duly fired the anticipated rebound in the manufacturing sector. <strong>The disappointing element of the Q3 GDP data was the renewed loss of momentum in the</strong>…</p>
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India's Q3 GDP data were better, but still some way from good. Gross Valued Added (GVA) growth picked up to 6.1% y/y from Q2's desperately disappointing 5.6% y/y but is still a long shy of the economy likely potential growth rate of c.7.5% per annum. 
Headwinds from the agricultural sector and government spending were expected while restocking duly fired the anticipated rebound in the manufacturing sector. The disappointing element of the Q3 GDP data was the renewed loss of momentum in the…


Chart of the Day: Cementing The Recovery