Experts expect GDP growth rebound to continue in next quarter as well

India's economy grew 6.3 percent in the three months ending in September from a year earlier, in line with expectations and faster than a provisional 5.7 percent in the previous quarter.

 

Commenting on the GDP numbers, Tushar Arora, Senior Economist with HDFC Bank said, "The GDP number is exactly in line with our expectations. Upbeat corporate earnings results have been reflected in the manufacturing sector.

 

"As the revival continues, we are likely to keep the annual (GDP) forecast unchanged at 6.5 percent."

 

Keki Mistry, CEO of HDFC anticipates that the next quarter will see a good jump in the GDP numbers.  Mistry also predicted that, “Manufacturing uptick will take some time.”

"Good growth figures in manufacturing reported growth of 7%, electricity, electricity, gas and water supply grew at 7.6 % and trade hotels, transport and communication grew at 9.9%. We expect that the issue of sales tax will not persist much longer. Construction continues to be low. It is indicator driven and based on steel and cement, and those numbers have not show high growth," said  T C A Anant, Chief Statistician.

Sumedh Deorukhkar, Senior Economist, BBVA said, "The latest growth outturn is in line with RBI's recent rhetoric and thus shouldn't move the needle on interest rates.

"We expect RBI to remain on pause in December and February, given upside risks to inflation as well as the fiscal deficit, exacerbated by rising oil prices and a gradually tightening global rates environment.

"We estimate India's full year GDP growth to pick up from 6.7 percent in FY18 to 7.3 percent and 7.5 percent in FY19 and FY20, respectively."

 

Harsh Mariwala, CEO of Marico, said, “This was expected. Some recovery is showing on the ground. We will see better numbers in the coming quarters.

 

Siddartha Sanyal, Chief Economist of Barclays Bank said, “The GDP numbers should not trigger exuberance. Some bit of normalisation is already on the way.”

 

Piyush Goyal, Minister of Railways, congratulated PM Modi for the GDP growth acceleration. He said, “Transformational reforms under PM Narendra Modi bearing fruit through faster growth and prosperity for all.”

P Chidambaram, Former Finance Minister and Congress leader, tweeted, “happy that the July-Sep quarter has registered a growth rate of 6.3%. This a PAUSE in the declining trend of the last five quarters."

“But we cannot say now whether this will mark an upward trend in the growth rate.”

“We should wait for the growth rates over the next 3-4 quarters before we can reach a definite conclusion.”

"6.3% is far below the promise of the Modi government and far below the potential of a well-managed Indian economy."

 


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