{"id":1956,"date":"2018-11-27T05:45:55","date_gmt":"2018-11-27T05:45:55","guid":{"rendered":"https:\/\/ncrfrontlinenews.com\/?p=1956"},"modified":"2018-11-27T05:45:55","modified_gmt":"2018-11-27T05:45:55","slug":"indias-gdp-growth-in-q2-likely-to-slow-to-7-5-7-6-sbi","status":"publish","type":"post","link":"https:\/\/ncrfrontlinenews.com\/?p=1956","title":{"rendered":"India’s GDP growth in Q2 likely to slow to 7.5-7.6%: SBI"},"content":{"rendered":"

Mumbai, <\/strong>Ahead of the official release of the second-quarter GDP figures, State Bank of India (SBI) on Monday estimated the country’s economy to expand by 7.5-7.6 per cent, slower than the prior quarter, mainly on account of a slowdown in rural demand.<\/p>\n

India’s largest lender also said in its Ecowrap report that the SBI Composite Leading Indicator (CLI), a basket of 21 leading indicators for the quarter in consideration, is showing a marginal declining trend.<\/p>\n

“Consequently, the headline second quarter Gross Value Added (GVA) growth could be 7.3-7.4 per cent, due to the slowing of rural demand,” the report said.<\/p>\n

GVA is the measure of national income and output that includes taxes and excludes subsidies.<\/p>\n

As per the first-quarter (April-June) figures released earlier by the Central Statistics Office (CSO), India’s gross domestic product (GDP) had grown by 8.2 per cent.<\/p>\n

“We also believe that the growth numbers in the second quarter will be helped by a weak base in the September quarter of 2017-18. We estimate that the base impact on second quarter GVA growth is around 30 bps (basis points). Based on tax collections, we subsequently expect second quarter GDP growth at 7.5-7.6 per cent,” said the report authored by SBI Chief Economist Soumya Kanti Ghosh.<\/p>\n

It also said that commercial vehicle sales, domestic air passenger traffic and cement production have maintained double-digit growth during the second quarter, pushing up the quarter’s GVA estimate.<\/p>\n

“The monthly data of various indicators for October 2018, however, suggest the GVA growth is slowing down due to decline in demand,” Ecowrap said.<\/p>\n

“Of particular concern is that non-food credit, bank deposits and sale of passenger and commercial vehicles have slowed down as compared to previous month. Also, with a slowdown in government spending in the second quarter, the fiscal impulses to growth would now be clearly missing,” it added.<\/p>\n

The report expressed “particular concern” about a global growth slowdown and “2019 could be the inflection point.”<\/p>\n

SBI expects manufacturing GVA in the quarter in question to pick up further with better performance of listed companies.<\/p>\n

“Overall manufacturing sector, which grew by 5.7 per cent in 2017-18, could now accelerate in the current fiscal with possible support from both crude oil prices and subsequent strengthening of the rupee,” it said.<\/p>\n","protected":false},"excerpt":{"rendered":"

Mumbai, Ahead of the official release of the second-quarter GDP figures, State Bank of India (SBI) on Monday estimated the country’s economy to expand by 7.5-7.6 per cent, slower than the prior quarter, mainly on account of a slowdown in rural demand. India’s largest lender also said in its Ecowrap report that the SBI Composite […]<\/p>\n","protected":false},"author":2,"featured_media":1957,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":{"0":"post-1956","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"_links":{"self":[{"href":"https:\/\/ncrfrontlinenews.com\/index.php?rest_route=\/wp\/v2\/posts\/1956","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ncrfrontlinenews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ncrfrontlinenews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ncrfrontlinenews.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/ncrfrontlinenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1956"}],"version-history":[{"count":1,"href":"https:\/\/ncrfrontlinenews.com\/index.php?rest_route=\/wp\/v2\/posts\/1956\/revisions"}],"predecessor-version":[{"id":1958,"href":"https:\/\/ncrfrontlinenews.com\/index.php?rest_route=\/wp\/v2\/posts\/1956\/revisions\/1958"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ncrfrontlinenews.com\/index.php?rest_route=\/wp\/v2\/media\/1957"}],"wp:attachment":[{"href":"https:\/\/ncrfrontlinenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1956"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ncrfrontlinenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1956"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ncrfrontlinenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1956"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}