India's GDP for Q1 at 6.1 perc - meets expectations

(posted under - Indian GDP news) - India's economy grew 6.1 per cent in the June quarter from a year earlier, roughly in line with forecasts, as government stimulus measures helped spur demand, although a poor monsoon threatens to crimp growth later in the year even as it drives inflation.

The economy accelerated from its 5.8 per cent rate in the previous quarter, data showed on Monday, propelled by a pick-up in activity in the mining, manufacturing, electricity and services sectors from the previous quarter.

Indian economy account deficit becomes thinner at 1.3 percent

Here is good news for all the indian,s - India's current account deficit this fiscal is likely to narrow down to 1.3 per cent of GDP as the trade gap shrinks and FDI inflows pick up on the back of positive election mandate.

In 2008-09, the current account deficit was 2.6 per cent of the country's gross domestic product (GDP) at $29.8 billion, against $17 billion a year ago.

Goldman Sachs said the deficit is lower than their expectation of 3.5 per cent, mainly due to rapid fall in imports in the January-March quarter of 2008-09.

The firm also said that domestic demand and its expectations of the output gap closing rapidly, are likely to support a strengthening rupee.

India's GDP may average 7.2 pc over next 5 yrs

India's real GDP growth will average at 7.2 per cent over the next five years even as risks to the global economy continue to remain high, the Economist Intelligence Unit (EIU) has said.



The world's second-fastest growing economy may also see negative inflation for the next 3-6 months triggering expectation of rate cuts by banks, the research arm of London-based Economist added.

"Emerging Asia will be the world's fastest-growing region over the next five years (2010-13), but this mainly reflects a relatively strong growth performance by India and China. The EIU expects India's real GDP growth to average 7.2 per cent over the next five years," it said.

Global share prices have been boosted on expectations that the worst of the global economic meltdown is over, however, a sustainable recovery is distant, it maintained.

There may be more green shoots of recovery in the global economy as fiscal and monetary stimulus packages start to have an impact, but "growth over the next two years will be marked by a high degree of volatility", Vohra said. There will be a substantial slowdown in quarter-on- quarter growth rates once the stimulus fades, he added.

courtesy economictimes