India’s GDP for Q4 2014 is out. Growth for Q4 in real terms (i.e. net of inflation) is an abysmal 4.6%, and is only matched by the growth in the previous quarter.

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Nominal includes inflation. Our GDP actually grew 12% but net of inflation we grew at 4.61%.

From a sector persepective:

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Agriculture has helped hugely, growing 6.3% while manufacturing was down 1.4%. And the biggest growth piece was financial services, growing at 12%!

Importantly Construction and how its growth has slowed too, after manufacturing disappointed.

Let’s take a look at components:

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Private consumption growth came back big time at 8.2% but the government cut a lot of expenditure and tempered growth. The (Exports minus Imports) figure too added to GDP, and Exports grew 10% while Imports fell 3.7%.

Overall, this has been expected. The main thing now is – how does growth change with the new government? It’ll take us two more quarters of data to find out.

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