At 7 per cent growth, economic recovery still a way to gohttps://indianexpress.com/article/business/economy/indias-economic-growth-slows-to-7-per-cent-in-june-quarter/

At 7 per cent growth, economic recovery still a way to go

While this is much higher than the 6.7 per cent growth clocked in the first quarter of 2014-15, it is muted compared to the 7.5 per cent growth in the January to March quarter of last fiscal.

economy, indian economy, PM Narendra Modi, Narednra Modi, Modi govt, economic policy, indian economic policy, BJP, GDP, BJP govt, sunday column, express column, P Chidambaram, Indian Express
Quarterly gross value added at basic price at constant prices too grew at a sluggish 7.1 per cent in the first quarter of the fiscal as compared to a year ago.

India’s gross domestic product is estimated to have grown at 7 per cent in the first quarter of the fiscal, indicating that a full recovery in the economy is still some quarters away.

While this is much higher than the 6.7 per cent growth clocked in the first quarter of 2014-15, it is muted compared to the 7.5 per cent growth in the January to March quarter of last fiscal.

Quarterly gross value added at basic price at constant prices too grew at a sluggish 7.1 per cent in the first quarter of the fiscal as compared to a year ago.

[related-post]

“The economic activities which registered growth of over 7 per cent in the first quarter of 2015-16 as compared a year ago are ‘manufacturing’, ‘trade, hotels and transport and communication and services related to broadcasting’ and ‘financial, insurance, real estate and professional services’,” said the Central Statistics Office in a release on Monday.

Advertising

However, growth in agriculture is estimated at a mere 1.9 per cent while the growth in mining and quarrying was just 4 per cent during the period, it added.

The government in the Union Budget 2015-16 had pegged GDP growth at 8 per cent and 8.5 per cent in 2015-16, expecting a pick up in investments on the back of its various reform measures.

The sluggish growth data is also expected to lead to renewed demands for a rate cut by the Reserve Bank of India in its next bimonthly monetary policy review. The central bank in its policy review maintained a status quo on rates to ensure that inflation remained under control but industry has been seeking a cut in key rates to help fund capex plans.