India’s GDP numbers have divided economists and the government. Read More >>
Robust 7.8% GDP growth against 6.1% for Jan-March; this is the highest in four quarters, outshining global economies who are between 1-3%.
The growth in the manufacturing sector was at a puzzling 4.7%, despite double-digit predictions; this has perplexed economists as they expected it to grow between 17-18%.
The agriculture sector grew at 3.5% against 5.5% in Jan-March, but higher than 2.4% in April-June.
Some economists believe that the govt. has considered its calculation based on the informal sector while economists had considered EBITDA, which reflects the formal sector.
Urban consumption was primarily responsible for driving growth, but rural demand remained weaker; signs of consumption recovery are visible.
Revisions are expected in initial estimates, concerns about monsoons, global headwinds, and RBI rate hikes could cause the momentum to slow down.