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.