India Growth Disappoints at 4.6 Percent

India’s economic growth has remained subdued, due largely to a slowdown in the manufacturing sector, official figures have shown.

The economy grew at an annual rate of 4.6% between January and March, below analysts’ forecasts and the same pace as the previous quarter.

For the full 2013-14 financial year, growth was 4.7%, the second straight year of sub-5% expansion.

New Prime Minister Nahendra Modi has pledged to boost growth.

‘Turnaround’ coming
The manufacturing sector contracted at an annualised rate of 1.4% over the quarter, while the mining sector shrank by 0.4%. Offsetting this was a 6.3% growth in the agricultural sector.

Asia’s third-largest economy has been weighed down in recent years by high inflation, a weak currency and a fall in foreign investment.

Two years ago, India’s growth rate stood at about 8%.

via BBC

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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