India’s Economy Expands 4.7% in Last Quarter of 2019

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India’s economy grew in line with estimates in the last quarter of 2019, but the expansion was slower than a revised 5.1% in the previous quarter.

Gross domestic product expanded 4.7% in October-December from a year ago, matching the median estimate in a Bloomberg survey of 45 economists. The previous quarter’s growth was revised by the government from 4.5% earlier.

Key Insights

• While high-frequency indicators suggest momentum was returning in January, new risks are emerging from the outbreak of coronavirus, as shutdown of factories in China to check the spread of the virus hurts supply chains
• That may delay a recovery in India, where surveys showed consumer spending slumped and business sentiment was frail in the wake of a crisis in the shadow banking sector
• Finance Minister Nirmala Sitharaman, who unveiled modest steps to stimulate demand in her budget this month, has said she’s ready to do more to counter the effect the virus may have on the domestic industry
• The Reserve Bank of India, which has been on pause since December after five interest rate cuts last year, has left the door open for more easing to support the economy

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• Estimate for annual expansion in the year to March 31 was retained at 5%
• To read the full statement on GDP numbers, click here

--With assistance from Tomoko Sato.

To contact the reporter on this story: Vrishti Beniwal in New Delhi at vbeniwal1@bloomberg.net

To contact the editors responsible for this story: Nasreen Seria at nseria@bloomberg.net, Karthikeyan Sundaram

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