ADB anticipated India to grow at 4.7% in FY2013 (ending 31 March 2014) and 5.7% in FY2014. The Indian economy has bottomed out with economic growth accelerating to 4.8% in the second fiscal quarter from 4.4% in the first. Growth was spurred by higher output in both industry and agriculture and a rebound in exports. However, domestic demand remains weak as both consumption and investment continue to grow only sluggishly.
Although growth will remain soft in the first quarter of FY2014 owing to delayed investment announcements in the run-up to general elections, it will be supported by export recovery and likely sustained growth in capital expenditure after the second quarter of FY2014, once political stability has been re-established.
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