A recent report on Reuters mentions that India remained the fastest growing economy in the world during the last quarter, i.e. Q1 of 2017. …
India embittered some analysts as the officials informed that the country saw its growth slump to the slowest pace in a decade. The government’s measures did not work and the Asia’s third economy visibly slowed down, adding to the alarming news on the India’s economic conditions. But analysts should have got used to under-performing India as it was a normal picture of the Asian economy in the last fiscal year. However, some analysts underline that the worst is over and the better days are coming.
Two fast growing economies, China and India, saw their services PMI slump significantly in April. Certainly, it is not good news as indeed these two countries with other Asian nations have been driving the growth of the global economy – nothing to sneeze at. The findings by HSBC Holdings show, however, that India and China will face more challenges on their growth road.
According to newest data, India saw its industrial output contract in December for a second month. The contraction of India’s industrial output in the month, certainly, puts more pressure on the government which has been struggling to revive investments as the economy is expected to grow at the slowest rate in years. The figures also overshadow Finance Minister Palaniappan Chidambaram’s opinion that the India’s economy is showing signs of recovery.
OOn the 14th of December, the Ministry of Commerce and Industry posted data on inflation, showing that it dropped in the month of November. India’s inflation grew approximately 7.24 percent from a year earlier. Despite the surprising drop, the Reserve Bank of India is not expected to reduce interest rates as the inflation rate is still above its comfortable level.
On the 30th of November, the ministry of statistics informed that India saw GDP growth slow to 5.3 percent in the quarter ended in September. The economy of India slowed more than analysts initially expected. It is likely that the Asia’s third economy is to see its worst year in a decade as analysts underline the importance of implementing difficult reforms that could revive the economy of India.