Rise in Q2 GDP signals economic recovery: India Inc

Adjust Comment Print

In the previous quarter January-March, the growth rate had come down to 6.1 per cent.

The new numbers indicate that the economy is recovering after it hit a temporary slump following last year's note ban and the rollout of GST.

Finance Ministry officials hope the central bank will cut interest rates soon, but analysts say that rising global oil prices, which could pinch consumers through higher inflation, may instead force the RBI to hike in the second half of 2018, denting growth momentum. "We should wait for the growth rates over the next 3-4 quarters before we can reach a definite conclusion", Chidambaram said in his reaction to the latest GDP figures released by the Central Statistics Organisation (CSO).

"We estimate India's full year GDP growth to pick up from 6.7 percent in FY18 to 7.3 percent and 7.5 percent in FY19 and FY20, respectively". "Also, the government should look at further consolidating its reform agenda in the Union Budget to be announced two months from now to give further boost to investment". It was 7.5 per cent in the September quarter of 2016-17.

Expressing concern on the GDP numbers, Finance Minister Arun Jaitley said, "Last five quarters had witnessed a downward trend, GDP at 6.3% marks the reversal of that trend". The finance minister said a cogent GST mechanism has been developed and no country in the world has 5 per cent tax rate.

Читайте также: White House says Tillerson to remain as secretary of state

"Manufacturing reported growth of 7 per cent, electricity, gas and water supply at 7.6 per cent, and trade, hotels, transport and communication grew at 9.9 per cent", he said. Gross fixed capital formation has increased from 1.6% in Q1 to 4.7% in Q2.

"Traditionally, July-September is a quarter where a lot of production takes place to cater to festive demand".

GDP growth in the first half of the fiscal stood at 6 per cent versus 7.7 per cent in H1 previous year. "The growth in the "agriculture, forestry and fishing", "mining and quarrying", "construction" "financial, insurance, real estate and professional services" and 'Public administration, defence & other services" is estimated to be 1.7 percent, 5.5 percent, 2.6 per cent, 5.7 percent and 6.0 percent respectively, during this period", a press release by the government said.

TMC chief and West Bengal Chief Minister Mamata Banerjee was, however, more vocal in her criticism and claimed that a growth of 6.3 per cent was "no growth".

При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
«» 2007 - 2017 Copyright.
Автоматизированное извлечение информации сайта запрещено.

Код для вставки в блог

Comments