In the recent World Bank Survey, the Indian economy, whose size is pegged at $2.597 trillion, was ranked as sixth largest in the world - surpassing France. The base effect will not be so favourable.
India's growth projections of over 7.5 per cent, its fiscal discipline and taxation reforms, both direct and indirect, were the key points discussed at the meeting. "Private consumption grew at its fastest rate since demonetisation", Mendiratta added. Asked if there could be double-digit growth, Garg said 10 per cent growth might happen in one quarter or so but 10 per cent for annual growth is very very ambitious and very big thing.
"Despite an uncertain worldwide environment and volatile crude oil prices, India's sustained growth reflects its strong resilience to adverse global conditions, because of strong economic fundamentals". With this quarterly growth number, India seems to be poised to post 7.5%+ growth for FY19. However, we are still not prompted to lower our GDP forecast for FY 2018/19, which we expect at 7.3 percent.
The CSO in May said agriculture GDP grew at 3.4% in 2017-18, lower than 6.3% in the previous year. He expressed fears that the effect will not last long and the annual growth rate may be like last year's.
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The manufacturing industry will be supported by the corporate earnings which have risen by 7.9 percent in the first quarter, led by energy, metals and mining companies and retail lenders, the report said.
The manufacturing sector growth rate has jumped to 13.5 percent as compared to growth of (-) 1.8 percent, electricity, gas, water supply and other utility services sector growth rate has jumped to 7.3 percent as compared to growth of 7.1 percent in Q1 2017-18. The next sector to show the most promise was construction, which grew by 8.7 per cent during the quarter under review as compared to growth of 1.8 per cent in Q1 2017-18. It is also indicated in cement, steel and other products consumption and growth.
Private and government expenditures together contributed almost 67% of the GDP during the April-June quarter.
Moody's had, however, in November last year upped India's sovereign rating for the first time in over 13 years to 'Baa2′ with a stable outlook, saying that growth prospects have improved with continued economic and institutional reforms.