MUMBAI/BENGALURU (Reuters) – India’s economic system grew a lower-than-anticipated 6.6 percent in the October-December duration, the lowest in five quarters, dragged by using lower farm and production increase, government records showed on Thursday.
A Reuters poll of economists had forecast an increase of 6. Nine percentage for the December zone, in comparison with a downwardly revised 7.Zero percentage upward thrust in July-September.
The government additionally revised its 2018-19 GDP increase estimate to 7 percentage from 7.2 percent.
A PRASANNA, CHIEF ECONOMIST, ICICI SECURITIES PRIMARY DEALERSHIP, MUMBAI
“The Q3 GVA turned into consistent with our expectations but the GDP facts turned into particularly higher. The revisions to statistics suggest that the financial system had lost momentum beginning from the second zone itself. Headwinds to intake and outside demand are weighing on the increase while the nascent capex healing is providing a few signs of desire. The economic system is coming into FY20 with a weak momentum. Lower oil charges, decrease hobby charges and persisted capex increase ought to assist in increase recovering to 7.Three percent in FY20. With boom outcomes weaker than expected and inflation anticipated to be beneath goal, we see the MPC cutting coverage rates via 25 bps in April.”
SUJAN HAJRA, CHIEF ECONOMIST AND EXECUTIVE DIRECTOR, ANAND RATHI SHARES AND STOCK BROKERS, MUMBAI
“The numbers aren’t specifically encouraging, however, India’s universal boom charge is quite near 7 percent, and it stays the fastest growing united states inside the global, which is a touch solace as the boom is coming down globally.”
“If you go by means of the total-yr forecast, it basically means the fourth-zone variety may be around 6.Four percent, that is slightly worse than the modern area. So, I’m barely perplexed due to the fact my feel turned into that the fourth area could be in large part just like the 1/3 region.”
“I wouldn’t be surprised if the market now starts to speak to me approximately a 50 bps charge reduce by the RBI in April instead of a 25 bps reduce.”
“As of now, the tensions on the border gained’t have a primary impact on GDP boom inside the coming quarters, but there is probably some impact on flows.”
AURODEEP NANDI, INDIA ECONOMIST, NOMURA, MUMBAI
“The GDP increase range essentially suggests the cyclical slowdown entrenching itself. Going beforehand we do assume similarly moderation on tighter monetary conditions, weaker worldwide call for and political uncertainty. Therefore, in spite of finances and policy interest prices easing, there are enough boom headwinds to overpower the policy tailwinds. With low meals costs maintaining RBI’s headline inflation projection for end-2019 beneath four percent, the dullness of growth potentialities serves as a recipe for a 25 basis factor charge reduce with the aid of in April.”
TANVEE GUPTA JAIN, CHIEF INDIA ECONOMIST, UBS SECURITIES INDIA, MUMBAI
“Real GDP increase in the December area at 6.6 percent is widely in line with our expectancies. Considering the CSO now expects full-12 months FY19 increase GDP growth estimate at 7 percent, we assume increase inside the March region at 6.1-6.Four percent.”
“Our UBS India Financial Condition Index shows that there is a few easing within the index from January 2019 onwards and if that trend sustains, we count on a boom to begin getting better from the June 2019 area onwards. The easing economic (we now count on MPC to reduce rates through cumulative 75-100bps on this cycle) and fiscal coverage will provide a few leeways to enhance intake and for this reason, an overall increase over the coming quarters.”
ANITA GANDHI, WHOLE TIME DIRECTOR, ARIHANT CAPITAL MARKETS, MUMBAI
“For the market angle, this variety is disappointing. A global boom is also slowing down.”
“Employment generation is very vital from the angle of GDP boom. As in step with the contemporary data, India has visible development on that front.”
“GDP is like the government’s document card. People will see it on a 12 months-to-yr basis, not just a zone and this can have an impact given elections are near.”
RUPA REGE NITSURE, GROUP CHIEF ECONOMIST, L&T FINANCE HOLDINGS, MUMBAI
“I had expected the overall GDP increase for FY19 to get revised downwards, as the farm area had suffered due to extraordinarily uneven rainfall, depleted water reservoir tiers in key agrarian states and their effect on sowing of foodgrains. Manufacturing and small offerings too had slowed due to a disaster of self-belief for the NBFC region from September to December 2018. The GDP information has efficaciously captured those activities that had impacted increase. In retrospect, the RBI’s policy actions on February 7 get strongly vindicated.”