The good news continues for the Indian economy. In our last monthly top-picks
report, we had highlighted that several pockets of the economy are witnessing
growth, mainly driven by consumption and government spending. The latest GDP
numbers are a testimony to our claim. India’s GDP for 4QFY2016 grew by 7.9%
while FY2016 GDP growth came in at 7.6%, being primarily driven by private
consumption (55.3% of GDP) which grew by 8.3% for 4QFY2016. Moreover, the
April 2016 core sector production continued to be robust, accelerating at its
fastest pace in the past one year. Amongst the core sectors, Petroleum Refinery Products, Electricity, and Fertilizers,
witnessed healthy growth in the past two months while Cement and Steel too have
performed well indicating the economy is gathering steam and is unfazed by the
uncertainty in the global economy. Apart from the growth witnessed in the core
segment, consumption across various pockets remains encouraging and is
showing promising signs for the future.
