Indian economy grew at buoyant pace

Indian economy grew at buoyant paceThe Indian economy grew at a buoyant pace at 8.5 percent that was in line with the market expectations. However, the Q4 GDP numbers were below estimates at 7.8 percent.

Manufacturing in Q4 grew at 5.5% vs 16.3% YoY. Q4 agricultural sector grew by 7.5% vs 0.7% YoY. Mining sector grew at 1.7% vs 8.9% YoY.

From in.finance.yahoo.com:

Analysts say that investments had taken a beating in the last quarter due to high inflation and bearish market. They believe that this trend might continue in the first quarter of FY12 but might consolidate by the second quarter.

Economists and government officials have recently revised downward their expectations for the current financial year, citing rising crude oil and other commodity prices and doubts about economic recovery in developed nations.

Prime Minister Manmohan Singh said at the weekend he was confident that India would achieve 8.5 percent growth this year, helped by expectations of a normal monsoon which is crucial to economic expansion.

Inflation would be a big concern in the short term and might affect the consumption rate, according to the CBS.

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