CRISIL has increased the country’s GDP growth estimate for the current financial year from 6.5 percent to 7.00 percent. This decision has been taken after higher than expected 8 percent GDP growth in the first half. CRISIL Chief Economist Dharamkirti Joshi said India’s real GDP growth in the second quarter was 8.2 percent, which was higher than expected. However, due to moderation in inflation, GDP growth at current prices remained only 8.7 percent. Joshi said that there has been an 8.00 percent growth in the first half and the growth is expected to be 6.1 percent in the second half due to the impact of increased US tariffs.
Significant acceleration in the growth of manufacturing and service sectors
According to CRISIL, the main reason for the high growth of real GDP was private consumption. From the supply side, there was a significant increase in the growth of manufacturing and service sectors. Joshi said that due to reduced food inflation, alternative expenditure has increased in the country. He said that the benefits of these favorable factors will continue in the third quarter also. Government investment is expected to remain stable, while private investment may pick up late.
July-September growth was highest in last 6 quarters
Let us tell you that the Indian economy grew at the rate of 8.2 percent in the July-September quarter of the current financial year, which is the highest in the last 6 quarters. This information was given in the official figures released on Friday. The growth rate of gross domestic product (GDP) in the same quarter of the last financial year was 5.6 percent. The growth rate in the April-June quarter of the current financial year was 7.8 percent. GDP means the total value of goods and services produced within a country’s borders in a given period of time.
What do the experts say
According to experts, the 8.2 percent growth in GDP in the July-September quarter of the current financial year was possible due to strong domestic demand, strong exports of services and low inflation. He said that this performance shows India’s strong economic potential.
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