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GDP growth slows to 7.3 pc in third quarter
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SME Times News Bureau | 09 Feb, 2016
The Indian economy grew 7.3 percent in the third quarter ended December
31, 2015 -- down from the 7.7 percent expansion in the previous quarter,
but marginally up over the 7.1 percent over the like period of last
fiscal, official data showed on Monday. The Indian industry said it was
looking to the upcoming union budget giving a positive direction to the
economy.
As per official data on gross domestic product (GDP)
released by the Central Statistics Office (CSO), the growth was pulled
down by lower production in 'agriculture, forestry and fishing',
'electricity, gas and water supply and other utility services' and
'financial, real estate and professional services'.
Inadequate
rainfall this year meant agriculture and allied activities registered
negative growth of (-)1 percent in the quarter -- compared to a 2
percent growth in the previous quarter. Besides, there was a 6 percent
growth in electricity, gas, water supply and other utility services --
as against 7.5 percent growth in the second quarter.
Financial
and professional services income in the September-December quarter grew
at 9.9 percent -- compared to 11.6 percent in the previous quarter.
The
government's mid-year economic review, released in December, lowered
the economic growth forecast for the current fiscal to the 7-7.5 percent
range, from the previously projected 8.1-8.5 percent, mainly because of
lower agricultural output due to deficit rainfall.
India, last
year, changed the way it calculated its gross domestic product under a
new series, though the controversy over the changed methodology employed
refuses to die down with economists even terming it obscure.
Changing
the base year to 2011-12 from 2004-05 in January, the Central
Statistics Office said India's real GDP, that is adjusted for inflation,
grew by seven percent in the first quarter of this fiscal, while for
the first half of the current fiscal it grew overall at 7.2 percent.
Caution
over the domestic economic growth data and a consolidation trend
subdued Indian equities markets on Monday. This led to a barometer index
of the Indian equity markets to end the day's trade in the red -- down
330 points.
In a report earlier this week, the Japanese financial
services firm Nomura said India's economic growth momentum is likely to
slow down in the face of weak external conditions and sluggish
investment demand.
Nomura said in a research note that there is a
"downside risk" to its baseline forecast of 7.8 percent GDP growth in
2016, adding that a reading still above 100 on its Composite Leading
Index "suggests a mid-cycle consolidation, rather than the start of a
downturn" in India.
Reacting to the growth data, Federation of
Indian Chambers of Commerce and Industry (FICCI) Secretary General A.
Didar Singh said in a statement: "Some moderation has been reported in
the other key sectors of the economy and we do hope to see a turn-around
in near future."
"We look forward to the union budget giving a
positive direction to the economy. The focus should clearly be on
introducing measures to further boost domestic investments and demand,"
he added.
"Considering that agriculture's gross value-added has
turned negative, the sector continues to be key area of concern for the
economy," said Sunil Kanoria, president of the Associated Chambers of
Commerce and Industry of India (Assocham).
"The government should
also take proactive policy measures in the upcoming budget specifically
focused on agriculture, infrastructure sector, steel, banking and
financial sectors, among others, to revive the economy," Kanoria said.
"Confederation
of Indian Industry looks forward to a reform-centric budget which would
put in place bold measures to remove supply bottlenecks and in turn
spark a virtuous cycle of investment and growth," CII Director General
Chandrajit Banerjee said in a statement in New Delhi.
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Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
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66.20
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64.50 |
UK Pound
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87.50
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84.65 |
Euro
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78.25
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75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
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