First reaction on GDP growth; DEA Secretary SC Garg says 7.1% seems disappointing

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November 30, 2018 6:26 PM

As India clocked a GDP growth rate of 7.1% in the second quarter of the financial year 2018-19, down from the previous quarter's 8.2% and lower than expected 7.4%, DEA Secretary S C Garg tweeted that the number seems disappointing.

As India clocked a GDP growth rate of 7.1% in the second quarter of the financial year 2018-19, down from the previous quarter's 8.2% and lower than expected 7.4%, DEA Secretary S C Garg tweeted that the number seems disappointing.As India clocked a GDP growth rate of 7.1% in the second quarter of the financial year 2018-19, down from the previous quarter’s 8.2% and lower than expected 7.4%, DEA Secretary S C Garg tweeted that the number seems disappointing.

As India clocked a GDP growth rate of 7.1% in the second quarter of the financial year 2018-19, down from the previous quarter’s 8.2% and lower than expected 7.4%, DEA Secretary S C Garg tweeted that the number seems disappointing. He, however, added that the slowdown in construction and mining sectors reflect monsoon months deceleration.

“GDP growth for second quarter 2018-19 at 7.1% seems disappointing. Manufacturing growth at 7.4% and agriculture growth at 3.8% is steady. Construction at 6.8% and mining at -2.4% reflect monsoon months deceleration,” SC Garg said in a tweet. He added that the half-year growth at 7.4% was still “quite robust and healthy”.

Economists said that the GDP growth may have slowed down due to dismal consumption and investment trends following a liquidity squeeze in the non-banking finance companies.

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