India's economy has grown at 7.7 per cent in the first quarter of this fiscal, down from 7.8 per cent in the last quarter. This is the slowest pace of GDP (gross domestic product) growth in the last six quarters. GDP is a yardstick of the country's economic health.
The GDP growth was marginally higher than analysts' expectations of 7.6 per cent. Gaurav Kapur, Senior Economist at RBS said, "The numbers are in-line with expectations and broadly in-line with the growth RBI has projected... Services growth at 10 per cent adds to the comfort... I don't think this will change RBI's stance of being hawkish on inflation."
The services sector grew at an impressive 10 per cent and that helped the economy stay buoyant. Agriculture growth also rose to 3.9 per cent against 2.4 per cent.
Dr Suman Berry said, "Strength of the services sector is reassuring...Manufacturing is very important...from a structural point of view that is a concern."
Manufacturing sector was a laggard where growth declined to 7.2 per cent against 12.7 per cent as compared to same quarter in the last year.
Rajiv Kumar, Secretary General of FICCI said, "This is just the beginning of the slowdown... If this continues, then you might well see manufacturing come down rapidly and it will be difficult to revive it.
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