I have already mentioned here that I see India as the high-growth hotspot of the next few years, if not decades. Above all, its strong demographic situation and its embedding in geopolitics as a typical swing state between the BRICs and the dollar area will strengthen growth in India. The current figures confirm this thesis. India's GDP grew by 8% last year, and investment in particular is now up by over 10%, which is impressive.
Economic Snapshot: India's Q4 Performance
- Manufacturing growth moderated to 11.6% in Q4, down from 14.4% in the previous quarter.
- Services sectors saw an uptick in growth, accelerating to 6.7% from 4.5%.
- Private consumption experienced a 3.5% increase year-over-year, while government expenditure contracted by 3.2%.
- Investment surged by 10.6% compared to the same quarter of the previous year.
- However, agriculture contracted by 0.8% due to adverse weather conditions. India faced its weakest monsoon rains in five years, prompting the government to extend restrictions on exports of key farm commodities such as sugar, rice, and wheat.