PTI reports that India's GDP for the first half year of this financial year grew by 7.6%, in-line with the Central bank and the Government's estimates. The growth, the second-highest in the world in the face of a major recession, was mainly fueled by strong performance in services and construction. GDP growth in the corresponding period last year was at 9.3%.
Virtually all sectors, from manufacturing to agriculture to mining and electricity, faces a slowdown. Agriculture, which employs 60% of workers in India, grew by a mere 2.7% vs. 4.7% (YoY). However, trade, hotels, transport and communication grew by 10.8% vs. 11% (YoY), which is quite good.
The news is also accompanied by data that shows that WPI inflation fell to 8.84% from a year-high of over 12%.
With the strong GDP growth and falling inflation, corporate India is hoping for a rate cut from the RBI. On this good news, the SENSEX was in the green today, above the 9,000 mark in spite of the terror siege in Mumbai. Shares of Tata were down.