India’s 4Q2012 GDP came in at 4.5% yoy, weakness in growth driven by services sector, in part due to higher-than-expected fiscal consolidation. Industry growth showed some uptick but continues to remain weak. We think the activity weakness will also carry forward to Q12013. Real GDP: +4.5 yoy vs. GS forecast: +4.8% yoy, Bloomberg consensus: +4.9% yoy.
Weakness in growth was driven by the services sector, community and social services in particular, which contributed to 30bps of the slowdown in growth compared to the previous quarter. This is mainly due to the government’s efforts to reduce the fiscal deficit.
Industry GDP growth showed a small uptick, led by the
Read moreQ4 – 2012 GDP Lowest in 10 Years under Congress UPA MisManagement of India