GDP data for Q1 to be released today: Will FY19 begin with beating 7.7% growth rate?

By: |
Updated: Aug 31, 2018 2:22 PM

The government on Friday will release the Gross Domestic Product (GDP) data for the first quarter of the financial year 20181-19.

GDP data for Q1 to be released today: Will FY19 begin with beating 7.7% growth rate?

The government on Friday will release the Gross Domestic Product (GDP) data for the first quarter of the financial year 20181-19. As in the previous financial year, after suffering initial hit due to the GST, the economic growth recovered to post an unexpected growth of 7.7% in the fourth quarter, the question is will the growth trajectory continue?

Experts expect a GDP growth rate of between 7.5% and 7.7% in the April-June quarter, as against a three-year low of 5.7% in the same period last quarter. This quarter the Foreign Direct Investment (FDI) inflow could turn out to a star performer, while agriculture growth is expected to remain under strain.

However, Care Ratings has made an observation that since last year was a different year marking the switch to the Goods and Services Tax (GST) regime, the GDP growth rate indicators this quarter may give a better-looking picture. It expects the GDP growth rate in Q1 to be 7.6%.

The SBI Research expects a slightly better result and has forecasted a growth rate of 7.7% in the first quarter, while Morgan Stanley predicts 7.5% GDP growth rate. The GDP growth this quarter will majorly be driven by an uptick in mining & quarrying, manufacturing and construction sector.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Innovative India must capture all segments of financial market to fuel growth: IMF
2India will come out of COVID crisis with flying colours: Deloitte CEO Punit Renjen
3Fed’s Powell sees US boom ahead, with COVID still a risk