GDP Growth Accelerates to 7.4% in Q2, Rate Cut Unlikely
Higher manufacturing output pushed India’s GDP growth to 7.4 per cent in the September quarter as compared to 7 per cent between April and June 2015.
Analysts said GDP growth in Q2 was in line with estimates; a Reuters poll had estimated GDP to expand by 7.3 per cent in Q2.
Manufacturing sector grew by 9.3 per cent in the September quarter as compared to 7.9 per cent in the same quarter last year. The surprise was agricultural output, which rose 2.2 per cent versus 2.1 per cent in the corresponding quarter last year.
The agricultural sector was expected to be a drag on growth on account of a second consecutive drought in many parts of the country.
The services sector, which contributes nearly 60 per cent to the economy, however grew at 8.8 per cent year-on-year as against 10.4 per cent in the corresponding quarter last year.
Stronger growth would be a boost for the Modi government, which has lined up a series of reforms in Parliament. However, Monday’s GDP data could persuade the Reserve Bank of India to keep interest rates unchanged on Tuesday, analysts said.
Although headline growth rates appear strong, that is in part the result of change in statistical methods that seek to capture more evidence of economic activity. Other barometers such as bank credit growth, jobs and consumer demand paint a less healthy picture, analysts say.
Read full article: NDTV
About 17,000 employees of the Reserve Bank of India are set to go on strike today for better retirement benefits Read more
Three banks snapped up almost 90 percent of bonds sold by Indian states to foreigners, and turned them into derivatives, Read more
New Delhi: Moody's Investors Service today cautioned that a loss of momentum on reforms may hamper investment and prove to Read more
New Delhi: The Winter Session of Parliament began on Thursday with a two-day special sitting to celebrate Constitution Day in Read more
