India’s GDP (gross domestic product) grew 7.6% in 2QFY09 (Jul-Sep ’08), in line with our estimate and ahead of consensus (7.2%).
There has been a slowdown in all the major components: agriculture (2.7%), manufacturing (6.1%) and services (9.6%). The deceleration, however, has been much more modest than what was envisaged by the Street. The growth in 1HFY09 at 7.8%.
In line with liquidity and credit problems faced in recent months, we expect GDP growth to slow in 3QFY09 to around 7.2%. The trend is likely to reverse in 4QFY09 and projected to be 7.8% in FY09. The performance of agriculture, mining, electricity and personal and social services are likely to improve in 2HFY09, while manufacturing, construction and trade, hotel, transport and communication are likely to witness deceleration.
Tax Revenues Decline in Oct-2008:
Another report on the macro, Inflation for the week ended November 15, 2008 falls further to 8.84% as compared to 8.90% reported in the last week.
The prices of primary articles increased to 11.90% for week. You can view the constituents of Indian Inflation Index here.