Eco­nomic Green Shoots likely in Q2

Man­u­fac­tur­ing, air travel, freight and cor­po­rate earn­ings point to a pickup: SBI

The Economic Times - - Finance & Commodities - Our Bureau

Mum­bai: In­dia’s eco­nomic growth rate may re­cover in the se­cond quar­ter of this fi­nan­cial year from a three-year low in the first quar­ter. In­di­ca­tors such as man­u­fac­tur­ing in­dices, in­ter­na­tional air pas­sen­ger and freight traffic and cor­po­rate earn­ings point to a pick-up in GDP growth, which could ex­ceed 6% dur­ing the three months ended Septem­ber, SBI said in a re­port. An­nual growth could be over 7%, it said.

“We strongly be­lieve that se­cond quar­ter growth is likely to trend higher and might be in the lower end of 6-6.5% band with an up­ward bias,” SBI Re­search said in the re­port on Mon­day. The econ­omy ex­panded 5.7% in the quar­ter ended June on the back of the im­pact of the note ban in Novem­ber last year and teething trou­bles ahead of the goods and ser­vices tax regime, which was im­ple­mented from July 1.

The coun­try’s largest bank based its op­ti­mism on sev­eral pos­i­tive in­di­ca­tors. SBI’s Com­pos­ite In­dex, which in­di­cates pos­si­ble out­put trends, was buoy­ant for Septem­ber and Oc­to­ber due to a re­vival in the au­to­mo­bile in­dus­try. In­dus­trial out­put growth may be higher than 5%, while min­ing & elec­tric­ity growth is ex­pected to be sig­nif­i­cantly bet­ter.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.