At 7.4%, India is the world's fastest growing big economy

Join STPI Blog - http://stpi-scheme.blogspot.com/
 At 7.4%, India is the world's fastest growing big economy

India’s July-Sept economic growth accelerates to 7.4%

The data shows India continues to be the fastest growing major economy in the world. But while growth of more than 7% would be a dream for most countries, India needs to grow even faster if it is to create jobs for its large population.

For that, it needs big investments. And for those to come, the country needs to create a business friendly environment.

This week will be an important test for the government as it hopes to push a key tax bill through parliament, which will cut the multiple layers of taxation business owners here face, and introduce one single tax across the country.

If passed, it will be a landmark moment and will be the first major reform by Prime Minister Narendra Modi's government since it came to power in 2014.

***********************************

Source : http://www.firstpost.com/business/gdp-at-7-4-why-better-than-expected-growth-is-good-news-for-both-modi-and-rajan-2527178.html

*******************************************

The July-September Gross Domestic Product (GDP) numbers released on Monday reaffirms the belief that growth recovery is well underway in the economy. This should offer the much-needed room for the Reserve Bank of India (RBI) governor, Raghuram Rajan, to hold rates for now and watch on the inflation-front.

The RBI is set to announce the fifth bi-monthly monetary policy on Tuesday at 11 am in the backdrop of a worrying pick up in the retail inflation in the recent months, especially in the prices of pulse items. The central bank is widely expected to take a pause tomorrow and watch for more cues.

GDP booster :

The GDP, on a gross value added basis, grew at 7.4 percent in the July-September quarter compared with 7 percent in the June-quarter. A Reuters poll by analysts had forecast the GDP at 7.3 percent.

The fact that growth is supported by an improvement in the manufacturing segment (9.3 percent as compared with 7.2 percent in the preceding quarter) is more encouraging.

Simultaneously, the core sector numbers released on October showed a 3.2 percent growth, showing some consistency in improvement in the last three months. But on a year-on-year basis, the growth has slowed down from 9 percent earlier.

Even the 3.2 percent month-on-month numbers looks weak on a closer look since the jump has been mainly contributed by a sharp spike in the cement sector growth from a negative 1.5 percent growth in September to 11.7 percent in October.

More room for RBI to pause

The signs of pick up in economic recovery in the recent months offer more headroom to the RBI governor to take a pause on the rate cuts and watch inflation movement in the approaching months.

Source : http://www.firstpost.com/business/gdp-at-7-4-why-better-than-expected-growth-is-good-news-for-both-modi-and-rajan-2527178.html


This Blog helps you to have a better understanding of STPI scheme, export of IT & software and software services including Information Technology (IT) enabled services/ Bio- IT And other export promotion scheme of Government of India.
You are requested to join STPI Blog for the latest updates, news, RBI guidelines for exporters, FEMA Regulations and other related information.
Become Follower of Our Blog - http://stpi-scheme.blogspot.com/
Join Facebook Group  of STPI -