Happy that growth rate has quickened, says P Chidambaram on 8.2% GDP growth but warns this

By: | Updated: August 31, 2018 7:24 PM

As India clocked 8.2% GDP growth rate in April-June quarter of the financial year 2018-19, former finance minister and senior Congress leader P Chidambaram said that he is happy that the rate of growth has quickened.

Happy that the rate of growth has quickened, P Chidambaram says on 8.2% GDP growth but warns thisHappy that the rate of growth has quickened, P Chidambaram says on 8.2% GDP growth but warns this

As India clocked 8.2% GDP growth rate in April-June quarter of the financial year 2018-19, former finance minister and senior Congress leader P Chidambaram said that he is happy that the rate of growth has quickened. He, however, pointed out that the GDP number reflects a higher growth than actual as the growth rate is based on the lowest base (5.6%) in the last 8 quarters.

“Going forward, the base effect will not be so favourable. And when we reach Q3 and Q4, the rate of growth may decline and the annual growth rate may be more or less like last year’s,” he tweeted.

Also Read: FY19 begins with a bang; India Q1 GDP growth hits 8.2%

Care Ratings had also pointed out in its GDP growth preview report that in this quarter, the GDP growth could reflect a better growth as it is pitted against low growth registered last year. Aditi Nayar, Principal Economist of ICRA said that there are some concerns lingering on the sustainability of the growth.

“While GDP and GVA growth posted a welcome upside surprise in Q1 FY2019, some concerns linger on the sustainability of growth around 8.0% in the remaining quarters of FY2019, given the base effect, risks posed by higher crude oil prices, interest costs and a weakening rupee, as well as fiscal constraints,” Aditi Nayar told FE Online.

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