India GDP Data on Friday Could Point to Higher Growth

After two consecutive years of sub-5 percent growth, India’s economy looks to have snapped out of its funk in the April-June quarter, as optimism surrounding the new government drove a pickup in economic activity.

Gross domestic product (GDP) data due out on Friday is expected to show Asia’s third largest economy expanded 5.3 percent on year in the April-June quarter, according to Reuters poll, the fastest pace in two years and up from 4.6 percent in the previous three months.

“The recent upturn in PMIs [Purchasing Managers’ Index], business sentiment indices, strong capital markets, macro stability alongside a stable political climate signal that the slowdown in the growth cycle is behind us,” said Radhika Rao, economist at DBS.

A particular bright spot for the economy has been industrial production as growing confidence among businesses leads to a pickup in demand.

Industrial production – which includes the output of factories, mines and utilities – rose 3.4 percent on year in June following a rise of 4.7 percent a month earlier.

via CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza