Indian economy likely to have grown higher in Q3

India’s economic growth is expected to have accelerated in the third quarter of this year. According to a Societe Generale research report, the GDP of the nation is likely to have grown 7.3 percent year-on-year in the September quarter, as compared with the 7.1 percent growth seen in the second quarter. The country’s economic activity in the third quarter is expected to show rebounded economic activity as compared to the activity witnessed in the prior quarter.

Household consumption and government domestic consumption are expected to have been driven mainly by festival period-led demand. Moreover, government expenditure is likely to have stayed quite strong, led by an increased level of capital expenditure.

Private investment continues to stay weak in India, while high government capital expenditure remains the only saving grace, noted Societe Generale. Overall, high frequency data continues to send mixed signals. Core sector performance is indicating signs of a rebound, but India’s industrial production stays weak. Railway freight movement has not shown any sign of a rebound yet, added Societe Generale.