June 22, 2018

India's economy recovers, posts growth of 7%

03 March 2018, 12:09 | Simon Arnold

India back as fastest-growing economy

India’s economic growth picked up sharply in October December quarter expanding by 7.2 per cent which indicates that economy has turnaround after demonetisation and GST

A pick-up in the country's manufacturing, construction and agriculture sectors accelerated India's third quarter 2017-18 GDP growth to 7.2 per cent from a rise of 6.5 per cent achieved in the second quarter, official data showed here on Wednesday.

Railway freight traffic growth has been fuelled by strong growth in coal and cement freight volumes, in addition to revision in freight rates. Corporates too could become risk averse. "GDP trends are consistent with the robust growth of the manufacturing Purchasing Manager's Index, the Index of Industrial Production, and consumer demand", the economist pointed out.

Urjit Patel, governor of the Reserve Bank of India (RBI), earlier this month said the economic recovery was at a nascent stage and called for a cautious approach. And that of July-September quarter of 2017-18) to 6.3 percent. The figure improved for the second straight quarter. China had recorded a growth of 6.8% in the December quarter. During the December quarter, the gross valued added (GVA) for manufacturing grew at 8.9% higher than 6.9% in the previous quarter.

Statistics publicised on Wednesday highlight that the Indian economy grew by 7.2%, compared to China's 6.8% rate of growth over the same period.

The construction sector recorded a growth of 6.8%, higher than 2.8% in previous quarter.

A Reuters poll of over 35 economists had projected GDP growth of 6.9% in the third quarter, while a Morgan Stanley research note forecast growth to accelerate to 7%. India's GDP data are not particularly dependable measures of growth. Pant also expressed concern over the decline in private consumption during the quarter under review.

Growth of 10% or more, Kant said, is "very doable".

The news of the ongoing recovery and especially the improvement in investment demand will be welcomed by the monetary policy committee, which had been anxious about growth.

Last week, he told industrialists that his government was determined to put the economy back on a higher growth trajectory, but it is still far from firing on all cylinders.

The fraud has cast a shadow over the workings of state-run lenders, already reeling from accumulated bad loans accumulated that are higher than those of banks in most major economies.

He has stepped up spending on infrastructure and welfare projects to boost growth ahead of national elections in 2019. India's fiscal year runs from April to March. This will likely be reinforced by lower portfolio flows into India, as well as a tightening of monetary policy in the US.

Other News

Trending Now

U.S. to open new embassy in Jerusalem in May - State Department
On the same day, Israeli Prime Minister Benjamin Netanyahu hailed the US announcement as "a great day for the people of Israel". Trump said many previous presidents had made the move an election promise but failed to fulfill it. " But I get it ", he said.

Electric vehicle boom prompts Apple to get serious about securing cobalt
Cobalt prices have skyrocketed of late due to an expected growth in demand for electric vehicles powered by lithium-ion batteries. Apple has increased its engagement with cobalt miners in recent years due to scrutiny from global human rights organizations.

Boston Red Sox: JD Martinez and Sox finally have a deal
His overall season stats included a slash line of.303/.376/.690 with 45 home runs, 104 RBI, 85 runs and a bWAR of 4.1. Despite winning the AL East a year ago , the Red Sox hit the fewest home runs in the American League last season.

Apple to launch its biggest iPhone yet with 6.5-inch display
Apple's biggest iPhone is expected to feature a 6.5-inch display, and use the OLED display tech seen on the iPhone X. It will replace the Apple iPhone 8 that has a dated design when compared to other premium smartphones in the market.

Syria's Ghouta residents 'wait to die' as bombs fall
The most powerful are the ultraconservative Army of Islam and Failaq al-Rahman with a small presence of al-Qaida-linked fighters. More than 700 people have been killed in three months, according to local counts, not including the deaths in the last week.

The real reason Kate Middleton didn't wear black at the 2018 BAFTAs
She said: "It's more likely we'll see an alien onscreen than we'll see an Asian woman at the moment, which is disgraceful". Like the Golden Globes ceremony, women were asked to dress in Black in a show for solidarity for the #MeToo Movement .

Google is testing a bottom nav bar in the Phone app
Google has been on a mission to bring all its payment tools under the Google Pay brand, and today that includes Android Pay . This is clearly just the first step for Google Pay , though, and it seems that the company has big plans for the service.

Advisory warns of "exceptionally cold weather" for Ireland
The Met Office website reads: "Showers or longer periods of snow will affect eastern parts of the United Kingdom during Tuesday". It is expected Monday will bring the start of the coldest spell of the winter across the UK.

Arsene Wenger reveals failed transfer that was to take Guardiola to Emirates
Prediction: Man City Win (11/20) I'm expecting a close affair with City to come out on top in 90 minutes. Afterwards different people play all sorts of music but beforehand it's always reggaeton.

Zinedine Zidane: Physical issues keep Gareth Bale on bench
Real Madrid - Navas 6, Nacho 6, Varane 5, Carvajal 6, Theo 8, Kovacic 6, Casemiro 6, Bale 8, Lucas 9, Benzema 8, Ronaldo 9. Relegation-threatened Las Palmas scraped a point from drawing with Leganes 0-0 to inch its way toward safety.