In June Quarter Down From 6.1% In March GDP Growth Slows To 5.7%

India's GDP or gross domestic product grew at 5.7 per cent in the April-June quarter, slowing down from the 6.1 per cent recorded in the March quarter. Economists polled by Reuters had forecast Indian economy to grow at 6.6 per cent in the first quarter. To July 1 GST implementation destocking, in the run-up, impacted the growth numbers, say analysts.

Prime Minister Narendra Modi's shock decision last November to scrap high-value old banknotes wiped out about 86 percent of currency in circulation virtually overnight, pounding consumer demand.

 

But economists expect the economic growth to accelerate further during the course of this year. Some momentum in the run-up to the July 1 Goods and Services Tax (GST) rollout economic activity in the country had lost, has started to recover, according to global brokerage Nomura.
To accelerate in the second half of the current year the brokerage expects GDP growth. With collections exceeding the revenue target for the first month of July, the GST tax collection is off to a good start. Nearly one-third of tax payers are yet to submit their returns. Analysts say that collections are likely to go up as more tax payers pay their dues.

 

As measured by gross value added (GVA) is expected to expand by 7.3 per cent in the current fiscal the RBI estimates economic activity, up from 6.6 per cent in 2016-17, in its annual report unveiled on Wednesday the Reserve Bank said. Real gross value added (GVA) is another measure of economic activity that is arrived at by excluding net indirect taxes from GDP.

India's GDP or gross domestic product grew at 5.7 per cent in the April-June quarter, slowing down from the 6.1 per cent recorded in the March quarter. Economists polled by Reuters had forecast Indian economy to grow at 6.6 per cent in the first quarter. To July 1 GST implementation destocking, in the run-up, impacted the growth numbers, say analysts.
Prime Minister Narendra Modi's shock decision last November to scrap high-value old banknotes wiped out about 86 percent of currency in circulation virtually overnight, pounding consumer demand.

 

But economists expect the economic growth to accelerate further during the course of this year. Some momentum in the run-up to the July 1 Goods and Services Tax (GST) rollout economic activity in the country had lost, has started to recover, according to global brokerage Nomura.
To accelerate in the second half of the current year the brokerage expects GDP growth. With collections exceeding the revenue target for the first month of July, the GST tax collection is off to a good start. Nearly one-third of tax payers are yet to submit their returns. Analysts say that collections are likely to go up as more tax payers pay their dues.

 

As measured by gross value added (GVA) is expected to expand by 7.3 per cent in the current fiscal the RBI estimates economic activity, up from 6.6 per cent in 2016-17, in its annual report unveiled on Wednesday the Reserve Bank said. Real gross value added (GVA) is another measure of economic activity that is arrived at by excluding net indirect taxes from GDP.

 

 

 

For latest news on dailyaddaa, like us on Facebook and follow us on Twitter.

 

 

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *