India’s GDP growth further decelerated in Q1 2019 to 5.8% y/y due to a slowdown in private consumption and investment.
The return of the incumbent government under Prime Minister Modi is expected to provide greater political stability and attract investments due to the pro-business outlook of the party. Factors such as high capacity utilization and buoyant stock market conditions augur well for the currently subdued investment activity.
Even though most international organizations have revised the growth ﬁgures downward, India’s GDP is expected to grow by 7.2% in FY2019-20, as per the Reserve Bank of India (RBI).
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