Yes, the GDP number is horrible. But one nice thing: at a nominal per-capita income of Rs. 152,000, India has crossed $2,000 per-capita that we've always said was elusive. Here's hoping things get better from here.
Agriculture grew 9.8% nominal, but only 2.8% real - that's a hefty 7% inflation in there!
Strangely, Mining saw some 3% Deflation, with GDP in that sector falling 1.5% nominal, but growing at 1.5% real. Since real = nominal minus inflation (approximately) - there's been deflation in mining prices, apparently.
Even "electricity" with 4.8% nominal growth but 5.4% real growth. It's a little difficult to fathom here - have prices in electricity fallen?
The strongest growth has come from govt spending - and sectorally, in public administration and services. That's however just a 11% of GDP, so it's not going to make that much of a diff.
We've also reached the 200 lakh crore GDP number so for a few months, until it changes, I will be able to understand what X% of GDP actually means. This may not be of any use to you, but the math part of me sends a deep thank you note.
But overall the inflation numbers look seriously underestimated at 2.5%. but if that is correct then our interest rates are wayyyyyy too high. Need to get loans at 4%!
