Perspective on GDP Data by Mr Nish Bhatt, Founder & CEO, Millwood Kane International
Below the Perspective on GDP Data by Mr Nish Bhatt, Founder & CEO, Millwood Kane International
The Q2 GDP growth at 5.4% is a big negative, after a good monsoon year, this was least expected. The agricultural growth was steady at 3.5% vs 1.7% YoY. The fall in the growth rate could be attributed to lower private and government spending, which is unseasonal. Remember, the RBI has projected a full-year FY25 GDP growth at 7%, the latest GDP print may lead to RBI lowering its projection.
The government needs to increase its spending, this may also open up the debate on the RBI advancing its rate easing cycle to as early as December. The current quarter's spending and high-frequency indicators seem to provide some respite, a sustained and durable economic data is required.
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