India’s revamped national accounts data show that the economy in nominal terms is slightly smaller than previously thought, although the big picture remains intact. Relative to GDP, the budget and current accounts deficits are still low, though a slightly higher public debt ratio is a bit more of a concern. India will now take longer to overtake Japan (and Germany) in US$ nominal GDP terms, but that is still destined to happen eventually. And the new data continue to show a rapid pace of real GDP growth over recent quarters. As such, they don’t change our view that the RBI’s easing cycle is at an end.
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