India's GDP data, to be released at around 5:30 p.m., is likely to show that the domestic economy likely picked up pace in the September quarter. Stronger growth would be a boost for the Modi government, which has lined up a series of reforms in Parliament.
Here are 10 things to know about GDP data:
1) India's GDP likely expanded at 7.3 per cent in the September quarter as compared to 7 per cent in the June quarter, according to a Reuters poll.
2) The likely boost in economic growth is on account of higher government spending, analysts say. In the September quarter, capex has gone up by 41 per cent year-on-year.
3) Manufacturing, which accounts for about 18 per cent of the economy, likely grew 4.2 per cent in the first half of the current financial year, compared with 2.2 per cent a year ago.
4) However, agricultural output is likely to be a drag considering many parts in the country witnessed a drought for the second straight year, which has hurt farm output and rural wages. Demand for farm machinery like tractors as well as consumer goods has also taken a hit.
5) The sharp slowdown in exports of goods will also weigh on growth. Exports shrank by nearly a quarter in September from a year ago, falling for a 10th straight month.
6) A 7.3 per cent growth would put India ahead of China. Most emerging economies from Brazil to Russia are struggling amid global headwinds and China's slowdown.
7) Analysts say India remains a bright spot due to its divergent economy and windfall gains from a plunge in commodity prices. Sharp falls in the cost of oil and gold imports are reducing the trade deficit and giving a net boost to economic activity.
8) The implementation of goods and services tax - which seeks to unify India's 29 states into a single market - could help raise GDP growth to around 8 per cent in the next fiscal year, analysts say.
9) Strong growth in the September quarter however could persuade the Reserve Bank of India to keep interest rates unchanged on Tuesday.
10) Although headline growth rates appear strong, that is in part the result of a change in statistical methods that seek to capture more evidence of economic activity. Other barometers such as bank credit growth, jobs and consumer demand paint a less healthy picture, analysts say.
(With inputs from Reuters)
Here are 10 things to know about GDP data:
1) India's GDP likely expanded at 7.3 per cent in the September quarter as compared to 7 per cent in the June quarter, according to a Reuters poll.
2) The likely boost in economic growth is on account of higher government spending, analysts say. In the September quarter, capex has gone up by 41 per cent year-on-year.
3) Manufacturing, which accounts for about 18 per cent of the economy, likely grew 4.2 per cent in the first half of the current financial year, compared with 2.2 per cent a year ago.
4) However, agricultural output is likely to be a drag considering many parts in the country witnessed a drought for the second straight year, which has hurt farm output and rural wages. Demand for farm machinery like tractors as well as consumer goods has also taken a hit.
5) The sharp slowdown in exports of goods will also weigh on growth. Exports shrank by nearly a quarter in September from a year ago, falling for a 10th straight month.
6) A 7.3 per cent growth would put India ahead of China. Most emerging economies from Brazil to Russia are struggling amid global headwinds and China's slowdown.
7) Analysts say India remains a bright spot due to its divergent economy and windfall gains from a plunge in commodity prices. Sharp falls in the cost of oil and gold imports are reducing the trade deficit and giving a net boost to economic activity.
8) The implementation of goods and services tax - which seeks to unify India's 29 states into a single market - could help raise GDP growth to around 8 per cent in the next fiscal year, analysts say.
9) Strong growth in the September quarter however could persuade the Reserve Bank of India to keep interest rates unchanged on Tuesday.
10) Although headline growth rates appear strong, that is in part the result of a change in statistical methods that seek to capture more evidence of economic activity. Other barometers such as bank credit growth, jobs and consumer demand paint a less healthy picture, analysts say.
(With inputs from Reuters)
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
