Jaitley: India has standardised itself for growth rate of 7-8%
03 Diciembre, 2017, 00:07 | Author: Arnold Perez
The growth in the agriculture slowed to 1.7% compared to 2.3% in the last quarter and 4.1% in the same quarter previous year.
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.
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. The data also showed that the gross domestic product or GDP numbers expanded due to accelerated growth of manufacturing sector in the country.
Moody's had upgraded India's sovereign credit rating for the first time in 14 years on account of progress in economic and institutional reforms boosting growth potential. "The Modi governments efforts are ensuring better prospects for each Indian", he said in a statement and series of tweets. But we can not say now whether this will mark an upward trend in the growth rate. The rate of growth of gross fixed capital formation increased from 1.6 per cent in the first quarter to 4.7 per cent in the second quarter.
The Finance Minister further said, "The deceleration in overall growth witnessed since the first quarter of the last fiscal has been reversed and the economy now seems to have weathered the transitional challenges experienced earlier in the year and appears poised for a durable recovery going forward".
Congress head of communications department Randeep Surjewala said, "Improvement of GDP numbers is an encouraging sign, but it is just a temporary pause from the downward trend". The growth in construction sector was projected at 2.6% compared to 4.3% in the same quarter previous year. The growth in public administration, defence and other services also stood at 6 per cent. "Only talking. No performance", Banerjee said in a tweet, attacking the central government.
The GDP for the July-September quarter showed a growth rate of 6.3 per cent after the previous quarter recorded a three-year low of 5.7 per cent.
"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".
Government spending slowed in the quarter, growing 4.1 per cent, as against 17.1 per cent in the June quarter.
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