Macroeconomic indicators - Indian GDP accelerates in Q1

India’s economic growth accelerated for the first time since 2007, indicating the global recession’s impact on economy is waning.

The Central Statistical Organisation announced that Indian GDP expanded 6.1% last quarter from a year earlier after a 5.8% rise in the previous quarter,

However, India’s recovery may stall as drought threatens to reduce harvests and spur food inflation, making it harder for the central bank to judge when to raise interest rates.

Before the rains turned scanty, the Reserve Bank of India on July 28 forecast the economy would grow 6 percent “with an upward bias” in the year to March 31, the weakest pace since 2003. It also raised its inflation forecast to 5% from 4% by the end of the financial year. The key wholesale price inflation index fell 0.95% in the week to August 15th 2009.

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