India's economic growth may have plunged below the 5% level, but a slew of recent economic indicators and global investors' sentiment may be just what the economy needs to get back on the path to sustained recovery. In fact, a growth turnaround seems very much on the cards.
Multiple factors such as sharp measures to curb a worrying Current Account Deficit (CAD), a resilient rupee - thanks to the timely measures by the Reserve Bank of India (RBI), and the upcoming elections have worked to swing the mood positively.
GDP growth for the third quarter (Q3, October-December) is now estimated at a lacklustre 4.7%, but it is entirely possible that Q1 and Q2 figures would be significantly revised upwards once provisional figures are out in May.
Note that the growth rate for 2012-13 has since undergone downward revision, which would mean a lower base, or a statistical upside, for the current fiscal year. So, it seems quite likely that 2013-14 would not, after all, be the second successive year of below-5% GDP growth.
We take a look at five major factors that may well work to improving India's growth prospects:
Sharp narrowing in CAD: CAD fell to its lowest in eight years due to government-imposed curbs on gold imports and as the Reserve Bank of India's subsidy for non-resident Indians' US dollar deposits boosted capital flows.
The December quarter CAD, the excess of spending overseas than earnings, fell to 0.9% of the gross domestic product, from 6.5% a year earlier. For the April-December period, it was 2.3% of the GDP, down from 5.2% the same period earlier, data from the ..
Multiple factors such as sharp measures to curb a worrying Current Account Deficit (CAD), a resilient rupee - thanks to the timely measures by the Reserve Bank of India (RBI), and the upcoming elections have worked to swing the mood positively.
GDP growth for the third quarter (Q3, October-December) is now estimated at a lacklustre 4.7%, but it is entirely possible that Q1 and Q2 figures would be significantly revised upwards once provisional figures are out in May.
Note that the growth rate for 2012-13 has since undergone downward revision, which would mean a lower base, or a statistical upside, for the current fiscal year. So, it seems quite likely that 2013-14 would not, after all, be the second successive year of below-5% GDP growth.
We take a look at five major factors that may well work to improving India's growth prospects:
Sharp narrowing in CAD: CAD fell to its lowest in eight years due to government-imposed curbs on gold imports and as the Reserve Bank of India's subsidy for non-resident Indians' US dollar deposits boosted capital flows.
The December quarter CAD, the excess of spending overseas than earnings, fell to 0.9% of the gross domestic product, from 6.5% a year earlier. For the April-December period, it was 2.3% of the GDP, down from 5.2% the same period earlier, data from the ..
Source: Top News in Hindi
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