Indian Economy Grows 7.3 pct In Oct-Dec Quarter

Indian Stocks Strike Happy Note
India’s economic growth is seen at 7.6% for the current fiscal, the highest since the current methodology was adopted to compute national income and compared with 7.2% a year before, according to the advance estimate released by the Central Statistics Office on Monday, although gross domestic product (GDP) expanded at a slower pace of 7.3% in the October-December period against a revised 7.7% in the previous quarter. Analysts, however, termed the advance estimate “ambitious,” saying the required growth in the fourth quarter to realise this projection is as high as 7.9%, which looks difficult, especially when other high-frequency indicators, including a 13th straight month of export contraction, subdued manufacturing activity, auto sales and consumer goods output don’t suggest a high-growth trajectory. The government said the better-than-expected headline growth figures were the result of the reforms undertaken by it, and added that, going forward, things could look better as investment intentions would translate into activities on the ground.

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