In this quarter India is expecting to have 7.1% GDP about 1.1% less than the previous quarter of this year. The sharp decline was expected, India still managed came ahead of China’s GDP which was about 6.5% over the same period as the world’s fastest growing economy.
This will be a crucial time to watch India’s economy as Indian general elections are due in 2019. The current Prime Minister Narendra Modi promised when they won previous elections that his party will boost Indian economy and create millions of jobs.
Chief India economist Mr. Pranjul Bhandari at HSBC is expecting that Indian economy will continue to grow above 7% in the next few quarters. He also focused that the stable growth can be sustained “without stocking macroeconomic instability”. Couple factors out of many that which helped Indian economy to have good GDP was a 35% drop in Oil prices since October as India mostly import its oil requirement, second, a 5% stronger Indian rupee in just past month this defiantly helped India in having a stronger currency and buying power in the International market.
It will be interesting to see the growth on Indian economy before upcoming elections and how new government will keep up with the way economy is going and maintain the title of World’s fasted growing economy.