Quote on Quarterly GDP Growth Data by Dr. Manoranjan Sharma, Chief Economist at Infomerics Ratings
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Below the Quote on Quarterly GDP Growth Data by Dr. Manoranjan Sharma, Chief Economist at Infomerics Ratings
India’s GDP grew at its slowest pace of 5.4 % in 18 months largely because of infirm manufacturing (deceleration to 2.2% growth year-on-year in July-September versus 7% growth in April-June), electricity and gas production, and contraction in mining. Weak urban consumption following a rise in food prices despite rising government spending causes concern. There were also factors like dropping company profits, falling wages, and inflation.
While this GDP growth is below our expectation of about 6.5 % growth in Q2, we see it as a temporary blip because of the forthcoming impact of healthy kharif sowing, rising government expenditure, and the festive season upswing. This is not a structural retrogression of any kind. Hence, there is no reason for alarm and India is well on course to achieve a GDP growth of over 6.5 % in FY 25. India remains among the fastest-growing major economies. Decelerating GDP growth would, however, make the RBI’s task of adroitly managing the growth-inflation tradeoff odious
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