Moody's cuts India's projected growth rate for 2018

“On the domestic front growth should benefit from an acceleration in rural consumption supported by higher minimum support prices and a normal monsoon” Moody’s said

“On the domestic front growth should benefit from an acceleration in rural consumption supported by higher minimum support prices and a normal monsoon” Moody’s said

OECD in its latest Economic Outlook Report has estimated India's real GDP growth at 7.4 per cent and 7.5 per cent for 2018-19 and 2019-20 thus indicating that India is expected to maintain its status as the world's fastest growing economy.

For the financial year ended on March 31, the growth rate was pegged at 6.7 per cent, down from 7.1 per cent for a year earlier.

India's GDP growth rate of 7.7 percent, recorded in the fourth quarter of 2017-2018, shows that the country's economy was on an uptrend, said president of Federation of Indian Chambers of Commerce and Industry (FICCI) Rashesh Shah on Friday.

The minister further said that an vast growth in the field of manufacturing, agricultural and the construction has also been recorded, while highlighting that the manufacturing and construction areas also provide employment.

India's economy expanded 7.7 per cent year-on-year during the January-March quarter, recording the quickest pace of growth in almost two years.

India shot past China's 6.8 per cent growth for the January-March quarter. Similarly, construction sector GVA rose 11.5 per cent in the fourth quarter as compared to 3.9 per cent a year ago.

Garg said the GDP growth for the whole year at 6.7 per cent was revised upward from 6.6 per cent in the earlier estimate.

The data may offer a boost to Prime Minister Narendra Modi, who is set to seek a second term next year.

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GVA includes taxes but excludes subsidies.

"GDP growth has been increasing continuously every quarter".

Mining sector experiences a growth of 2.7 percent as against 1.4 percent in third quarter. It seems like we have moved beyond the teething troubles related to GST implementation.

It also highlighted an acceleration in rural consumption, higher minimum support prices and a normal monsoon to stabilize growth on the domestic front.

Economists are predicting a further pick-up in activity during the current financial year on the back of higher consumption demand, a stable GST and a surge in investment towards end of the year.

The growth in GVA was widespread led by public administration, which saw growth of 13.3 percent year-on-year. India meets 80 per cent of its oil needs from imports. "We should however be wary of the headwinds the economy faces in the coming quarters from higher crude prices feeding into inflation and rising inflation expectations".

He, however, agreed that the recent increase in global oil prices will have certain implications, adding that the downward revision by Moody's was also due to the rising oil prices.

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