Jaitley praises GDP rebound, Chidambaram says pause in declining trend

Jaitley praises GDP rebound, Chidambaram says pause in declining trend

Jaitley praises GDP rebound, Chidambaram says pause in declining trend

Jaitley further said that impact of demonetisation of high value currency notes of Rs 500 and Rs 1000 in November previous year was limited to one or two quarters.

The wholesale price index (WPI) in respect of the groups - food articles, minerals, manufactured products and all commodities, registered growth rates of 3.4 per cent, 2.1 per cent, 2.4 per cent, and 2.6 per cent, respectively whereas electricity declined by 1.6 per cent during Q2 of 2017-18. Expressing concern on the GDP numbers, Finance Minister Arun Jaitley said, "Last five quarters had witnessed a downward trend, GDP at 6.3 per cent marks the reversal of that trend".

According to data from the Central Statistics Office (CSO), the GDP for Q2 stood at Rs 31.66 lakh crore, or a growth of 6.3 per cent. India's GDP had grown at 7.2 per cent in the corresponding quarter previous year. "Demonetisation and GST's impact is behind us and hopefully, in coming quarters, we can look for an upwards trajectory". The big question is whether the manufacturing sector in its current state has the strength to deliver growth rates of above 9 per cent for two consecutive quarters.

The country's fiscal deficit at the end of October went up to 96.1 per cent of the budget estimate for the full year (2017- 18), mainly due to lower revenue realisation and increase in government expenditure.

According to data from the Central Statistics Office (CSO), the GDP for Q2 stood at Rs 31.66 lakh crore, or a growth of 6.3 per cent.

Scott Frost to leave UCF for Nebraska's head coaching job, ESPN reports
When he initially took over the Knights in the winter of 2015, they were coming off an 0-12 season. Frost played for Nebraska from 1995 to 1997 and served as a graduate assistant in Lincoln in 2002.

Former US NSA pleads guilty to lying to Federal Bureau of Investigation
Flynn resigned under pressure on February 13, following The Post's disclosure that he had, indeed, discussed sanctions. Flynn is now accused of "willfully and knowingly" making "false, fictitious and fraudulent statements" to the feds.

Rubin steps down from Essential after Google investigation revealed
Interestingly, Rubin is now also withdrawing from his role at Essential, a company he started after leaving Google. The allegations are that he maintained an “inappropriate relationship” with a woman, working directly under him.

"6.3% is far below the PROMISE of the Modi government and far below the POTENTIAL of a well-managed Indian economy", he wrote on Twitter.

Breaking a five-quarters' slump, a rise in the manufacturing sector's output pushed India's growth rate higher to 6.3 per cent during the second quarter of 2017-18, official data showed on Thursday, even as industry hailed the signs of economic recovery and the government said the twin impact of demonetisation and GST "are behind us". On November 17, Moody's upgraded India's sovereign credit rating for the first time in almost 14 years, saying continued progress on economic and institutional reforms would boost its growth potential.

"The latest GDP decline started in the fourth quarter of 2015-16".

The International Monetary Fund (IMF) said it will update its growth rate forecast for India in January next year.

The services sector too slowed down to 7.1 per cent during the quarter. The economic growth bounced back from a three-year low, giving the central bank enough ammunition to keep interest rates on hold on December 6 amid an uptick in inflationary pressures. Robust growth of 7.6 percent in electricity and other utilities, and 9.9 percent in trade, transportation and communications also powered this acceleration. "However, the deflator for this segment is declining in the past three quarters (from 5.0% to 2.1%) which is contributing to higher real growth", SBI said. "Dip in public administration has also hampered the Q2 growth", Associate Economist with Care Ratings, Rucha Ranadive told Zeebiz.

Related news