India: GDP growth expected to print at 7.5% Y/Y in Q3 - TDS

Research Team at TDS, notes that India’s GDP growth is expected by the consensus to print at 7.5% Y/Y in Q3 (Q2 of India’s FY2016/17), higher than 7.1% in the prior quarter.

Key Quotes

“Weak investment will continue to weigh down on GDP growth, although a near full normalization of monsoon rainfalls should have supported better agricultural output in the third quarter, and thus an acceleration in consumption. This is likely to be one of the fastest growth rates globally and in Asia in particular, although 2017 GDP may be marked by quite a visible deceleration as a result of the surprising decision from the government to demonetize the INR 500 and 1000 bills.”

“On a less relevant note, the October Eight Infrastructure Industries index will be released today. The September data expanded 5.0% Y/Y and numbers for October are likely to continue pointing at growth during the month.”