After two years of stagnation, things are finally looking up for Asia`s third largest economy. India, referred to by some as Asia`s sleeping giant, has seen gross domestic product (GDP) growth rates stuck below 5 percent for 8 straight quarters, damping hopes of an economic revival.
However, a pickup in economic activity over the past three months is restoring optimism around the country`s outlook. In a report released this week, Morgan Stanley outlined five key indicators that show growth is bottoming out:
1. Industrial production was better than expected for a second straight month in May, growing at its fastest pace since October 2012, helped by a combination of strong external demand and pick-up in domestic consumer demand.
2. Exports saw double-digit growth for a second consecutive month in June, as a recovery in global demand gained traction.
3. Non-oil, non-gold imports, an indicator of domestic demand, recorded positive growth for a second straight month in June.
4. Medium and heavy commercial vehicles sales growth, a barometer of economic activity and business confidence, turned positive for first time in 27 months in June.
5. Petroleum products consumption growth, another indicator of domestic demand, stood at a 17- month high in June.