Friday, Aug 14, 2020 | Last Update : 03:02 PM IST

142nd Day Of Lockdown

Maharashtra54831338184318650 Tamil Nadu3145202563135278 Andhra Pradesh2641421709242378 Karnataka1964941126333511 Delhi1494601343184167 Uttar Pradesh140775887862280 West Bengal98459671202059 Telangana8647563074665 Bihar8274154139450 Gujarat71064542382652 Assam5883842326145 Rajasthan5249738235789 Odisha4592731785321 Haryana4163534781483 Madhya Pradesh3902529020996 Kerala3811424922127 Jammu and Kashmir2489717003472 Punjab2390315319586 Jharkhand185168998177 Chhatisgarh12148880996 Uttarakhand96326134125 Goa871259575 Tripura6161417641 Puducherry5382320187 Manipur3752204411 Himachal Pradesh3371218114 Nagaland30119738 Arunachal Pradesh223115923 Chandigarh1595100425 Meghalaya11154986 Sikkim9105101 Mizoram6203230
  Business   Economy  29 Nov 2019  India's economy seen growing at 4.7 per cent in September quarter

India's economy seen growing at 4.7 per cent in September quarter

REUTERS
Published : Nov 29, 2019, 12:55 pm IST
Updated : Nov 29, 2019, 12:55 pm IST

PM Modi’s govt has taken several steps, including cutting corporate tax in Sept, to boost investments and bolster economic growth.

The unemployment rate in October rose to 8.5 per cent, its highest since August 2016.
 The unemployment rate in October rose to 8.5 per cent, its highest since August 2016.

New Delhi: India’s economy probably expanded at its weakest pace in more than six years in the quarter to September, a Reuters poll showed, as consumer demand and private investment weakened further and a global slowdown hit exports.

The median of a poll of economists showed annual growth in gross domestic product of 4.7 per cent in the quarter, down from 5.0 per cent in the previous three months and 7 per cent for the corresponding period of 2018.

 

Economic growth could dip to around 4 per cent in the September quarter, two domestic television channels said on Wednesday, citing government sources.

If the latest figure for expansion of gross domestic product is 4.7 per cent or less, the quarter will have registered the slowest expansion in 26 quarters, since 4.3 per cent in January-March 2013.

Prime Minister Narendra Modi’s government has taken several steps, including cutting corporate tax in September, to boost investments and bolster economic growth.

Economists in a Reuters poll predicted the Reserve Bank of India would cut its repo rate for the sixth time in a row, by 25 basis points, to 4.90 per cent at its Decembet 3-5 meeting.

 

“Agrarian distress and dismal income growth so far, coupled with subdued income growth expectation in urban areas, have weakened consumption demand considerably,” said Devindra Pant, chief economist at Fitch arm India Ratings & Research.

“Even the festive demand has failed to revive it,” he said, citing data on non-food credit, auto sales and select fast moving consumer goods.

“ECONOMIC EMERGENCY”

On Wednesday, in a heated parliamentary debate on the economic slowdown affecting jobs, opposition parties said million of people had lost their jobs and the country faced a “economic emergency”.

In her reply, Finance Minister Nirmala Sitharaman said the economy faced a slowdown but no “recession” and cited several government measures to support economic growth.

 

On Thursday, she sought parliament’s approval to spend USD 2.7 billion in addition to a budgeted 27.86 trillion rupees (USD 388 billion) in the 2019-20 fiscal year.

Economists said with persistently tight domestic credit and weak corporate profits, India’s recovery could be delayed and the pick-up would remain below potential.

India needs to grow at around 8 per cent to create enough jobs for its millions of young people joining the labor force each year.

The unemployment rate in October rose to 8.5 per cent, its highest since August 2016, according to the Centre for Monitoring Indian Economy (CMIE), though the government estimates that urban unemployment declined.

 

Some economists, however, said economic growth could pick up in the second half of the current fiscal year, after the government took steps to support real estate and non-bank finance companies.

“The economic slowdown has bottomed out in the September quarter,” said N R Bhanumurthy, an economist at the National Institute of Public Finance and Policy, a Delhi-based government think tank.

“With easing of credit and pick up in festival demand, economic growth is expected to pick up from October onward.”

Tags: economy, gdp growth
Location: India, Delhi, New Delhi