5 key Indian economic indicators that are fast improving

The Indian economy has been showing signs of revival and there are quite a few economic indicators that are improving. We take a look at 5 such key economic indicators.

Index for Industrial Production or factory output

Factory output in India has been rising and this is certainly good news as the manufacturing sector is now showing signs of bottoming out. The IIP or factory output for the month of May rose to a 19-month high of 4.2 per cent.

CPI Inflation falls

The CPI inflation or retail inflation has fallen to a 30-month low of 7.31 per cent. This is certainly good news for the common man, though some analysts caution that a rise in food inflation could lift retail inflation higher again.

CAD at just 0.2 per cent of GDP

India's current account deficit for Q3 2014 plunged to just 0.2 per cent of the Gross Domestic Product in the March quarter, from 3.6 per cent a year ago. This was largely on account of a drop in gold imports. This has helped the rupee to recover.

Forex reserves healthy

India's forex reserves are at a healthy $317 billion. The reserves had been hovering around the $290 billion level, but has increased thanks to robust FII inflows into the Indian equity markets and the RBI's move to mop-up dollars.

Reduced volatility in the rupee

The Indian rupee after having dropped to a low of as much as 68.86 against the dollar in August last year, has now recovered to the current levels of around 60. A sharp reduction in the current account deficit, after the imports of gold was curbed has helped the rupee.