DBS' Rao Sees India GDP Reviving in 2Q

The video discusses India's economic situation, highlighting its slowest growth rate in over two years. The Reserve Bank of India is analyzing these figures, with demonetization being a significant factor. Despite initial market expectations of a sharp slowdown, the economy showed resilience due to factors like festive demand. The first half of the year saw 7% growth, which slipped to 6% in the second half. However, positive triggers such as re-monetization, rural wage growth, and public sector wage increases are expected to drive economic recovery.

What was the economic growth rate of India during the period discussed?

• Slowest in over two years

• Fastest in a decade

• Consistent with previous years

• Unchanged from last quarter

What was one of the main reasons for the economic slowdown in India?

• Increase in exports

• Demonetization program

• Decrease in foreign investments

• Rise in oil prices

How did the market initially react to the demonetization program?

• Anticipated no change

• Forecasted a minor decline

• Predicted a rapid growth

• Expected a sharp slowdown

What is one of the positive triggers for economic revival mentioned?

• Decrease in rural wages

• Increase in public sector wages

• Rise in import tariffs

• Reduction in agricultural output

What is the expected trend for India's economic growth in the coming quarters?

• Stagnation

• Continued decline

• Unpredictable fluctuations

• Revival and growth