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

By: | Updated: August 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.

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