STREAMING NOW: Watch Now

Global slowdown? India's economy is accelerating

India's economy is racing ahead, shrugging off global trade tensions and a sharp fall in it...

Posted: Aug 31, 2018 3:34 PM
Updated: Aug 31, 2018 3:34 PM

India's economy is racing ahead, shrugging off global trade tensions and a sharp fall in its currency.

The country's gross domestic product grew 8.2% in the quarter ended June, according to official data released Friday.

That's a big jump from the 7.7% it delivered in the previous quarter, and widens India's growth gap over other major economies, including regional rival China.

The much larger Chinese economy grew 6.7% in the quarter ended June.

The Indian government cited an expansion in manufacturing and construction as key factors in the sharp spike in growth.

"Indian GDP growth beat most expectations in [the latest quarter] and is likely to continue expanding rapidly over the coming months," Shilan Shah, India economist at Capital Economics, said in a note.

But it's not all good news. Inflation has been rising, prompting the country's central bank to hike interest rates twice in three months, and India's currency — the rupee — hit a new record low against the dollar on Friday. The weak currency is driving up the price of imported goods.

Analysts say Friday's GDP reading could represent a peak if global growth starts to slow as a result of the escalating trade war between the United States and China. Rising oil prices could also act as a brake on India, one of the world's top energy importers.

"The outlook for the remainder of the year is not as optimistic," Priyanka Kishore, head of India at Oxford Economics, wrote in a recent note. "Elevated oil prices and escalating global trade tensions dampen the outlook going forward."

Further economic reforms are unlikely this year, Kishore said, as Prime Minister Narendra Modi approaches an election in early 2019.

Last year's tax reform was seen as broadly positive for the Indian economy in the long run, but "the hurdles to 'big bang' reforms on land and labor could prove to be much bigger," she added.

New York Coronavirus Cases

County data is updated nightly.

Cases: 607001

Reported Deaths: 34362
CountyCasesDeaths
Queens866847343
Kings855617489
Bronx616175030
Nassau574892244
Suffolk573662036
Westchester476321502
New York429813222
Erie21873762
Richmond214321119
Rockland20824692
Orange16093517
Monroe13054313
Onondaga9470222
Dutchess6811185
Albany5233148
Broome4983135
Oneida4292146
Niagara3261103
Ulster310998
Chemung272432
Putnam252964
Schenectady218955
Sullivan210848
Saratoga200619
Steuben161087
Rensselaer155450
Chautauqua141416
Oswego13026
Ontario113537
Tioga105548
Wayne98312
Columbia97056
Tompkins9530
Cattaraugus91924
Cortland9131
Allegany86952
Madison83618
Genesee8198
Cayuga7627
St. Lawrence7059
Greene64618
Livingston6248
Herkimer60312
Chenango58310
Orleans58156
Otsego5528
Warren54735
Fulton46128
Jefferson4573
Washington43314
Clinton4305
Wyoming4305
Montgomery41312
Delaware3199
Lewis3159
Schuyler2743
Seneca2605
Essex25214
Franklin2436
Yates2427
Schoharie1762
Hamilton401
Out of NY0120
Unassigned017
Utica
Few Clouds
42° wxIcon
Hi: 48° Lo: 41°
Feels Like: 37°
Oneonta
Scattered Clouds
41° wxIcon
Hi: 45° Lo: 40°
Feels Like: 34°
Herkimer
Few Clouds
42° wxIcon
Hi: 48° Lo: 40°
Feels Like: 37°
Thendara
Few Clouds
42° wxIcon
Hi: 41° Lo: 36°
Feels Like: 37°
WKTV Radar
WKTV Temperatures
WKTV Severe Weather
Click here to learn more about A Healthier Mohawk Valley
Stuff the Bus Locations
Saluting Those Who Are Proud 2 Serve