In India's economic pick-up, who's leading the pack and who's losing out? Noor Arora
India’s economic activity is picking up, boosted by a long-awaited recovery in consumption that’s helped cut down slack in the economy and underpinned sales of everything from cars to housing. Almost 60 per cent of gross domestic product comes from private spending, according to estimates from New York-based CEIC Data Co., with the pick-up helping to fuel growth of more than 7 per cent this year, making India the world’s fastest-growing major economy. Yet the performance isn’t uniform across all industries, with the banking and power sectors facing distress and global trade tensions clouding the outlook for exports. Here’s a detailed look at which sectors are ticking and those that are ailing: The Leaders Automobiles: The auto industry is on a strong footing. While demand is broad-based across markets, rural India appears to be doing particularly well, which is reflected in sales of two-wheelers and tractors. Companies such as Maruti Suzuki and Ashok Leyland are taking advantage of stronger demand by passing on higher prices to consumers.
ARTICLE SOURCE: BS