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Expert Views: Indian economy grows 7.3 pct in July-Sept from year ago

Reuters  |  MUMBAI 

(Reuters) - India's economic growth accelerated to a slower-than-expected 7.3 percent in the three months through September from a provisional 7.1 percent expansion in the previous quarter, data showed on Wednesday.

SHILAN SHAH, ECONOMIST, CAPITAL ECONOMICS

"In terms of the policy implications, today's release is unlikely to have much of an impact.

"The RBI itself has expressed doubts about the quality of the data and, in any case, its attention is likely to have turned to the impact of the government's demonetisation announcement at the start of this month.

"In the near term at least, this is likely to weigh on activity in sectors with high reliance on cash transactions.

"With the MPC (monetary policy committee) having already shown that it is willing to prioritise growth even at the risk of missing targets for inflation, we think that it will attempt to cushion the blow from demonetisation with another 25 bp cut in the repo rate (to 6.00 percent) in next week's policy meeting."

ADITI NAYAR, ECONOMIST, ICRA

"Both the and GVA expansion in Q2 FY2017 trailed our expectations, led by lower-than-expected agricultural growth and a contraction in mining.

"Today's release imparts a further downside to our and GVA growth forecasts of 7.5 percent and 7.3 percent for FY2017, which we had revised downward post-demonetisation.

"The deceleration in manufacturing growth in Q2 FY2017 relative to Q2 FY2016 was in line with our expectations, reflecting the lagged effect of a rise in commodity prices on earnings amid modest demand."

ANJALI VERMA, ECONOMIST, PHILLIPCAPITAL INDIA

"We have already lowered our number and we are now anticipating 6.8 percent (percent growth) for this year.

"I don't have to alter my numbers much based on today's data because anyway a lot is uncertain for the next two quarters.

"Public spending is good. I was expecting it to be a little lower, so that is impressive. I'm good with the numbers that they have given and I wouldn't alter anything in my projections."

(Reporting by Suvashree Dey Choudhury and Abhirup Roy; Compiled by Rafael Nam)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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Expert Views: Indian economy grows 7.3 pct in July-Sept from year ago

MUMBAI (Reuters) - India's economic growth accelerated to a slower-than-expected 7.3 percent in the three months through September from a provisional 7.1 percent expansion in the previous quarter, government data showed on Wednesday.

(Reuters) - India's economic growth accelerated to a slower-than-expected 7.3 percent in the three months through September from a provisional 7.1 percent expansion in the previous quarter, data showed on Wednesday.

SHILAN SHAH, ECONOMIST, CAPITAL ECONOMICS

"In terms of the policy implications, today's release is unlikely to have much of an impact.

"The RBI itself has expressed doubts about the quality of the data and, in any case, its attention is likely to have turned to the impact of the government's demonetisation announcement at the start of this month.

"In the near term at least, this is likely to weigh on activity in sectors with high reliance on cash transactions.

"With the MPC (monetary policy committee) having already shown that it is willing to prioritise growth even at the risk of missing targets for inflation, we think that it will attempt to cushion the blow from demonetisation with another 25 bp cut in the repo rate (to 6.00 percent) in next week's policy meeting."

ADITI NAYAR, ECONOMIST, ICRA

"Both the and GVA expansion in Q2 FY2017 trailed our expectations, led by lower-than-expected agricultural growth and a contraction in mining.

"Today's release imparts a further downside to our and GVA growth forecasts of 7.5 percent and 7.3 percent for FY2017, which we had revised downward post-demonetisation.

"The deceleration in manufacturing growth in Q2 FY2017 relative to Q2 FY2016 was in line with our expectations, reflecting the lagged effect of a rise in commodity prices on earnings amid modest demand."

ANJALI VERMA, ECONOMIST, PHILLIPCAPITAL INDIA

"We have already lowered our number and we are now anticipating 6.8 percent (percent growth) for this year.

"I don't have to alter my numbers much based on today's data because anyway a lot is uncertain for the next two quarters.

"Public spending is good. I was expecting it to be a little lower, so that is impressive. I'm good with the numbers that they have given and I wouldn't alter anything in my projections."

(Reporting by Suvashree Dey Choudhury and Abhirup Roy; Compiled by Rafael Nam)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

Expert Views: Indian economy grows 7.3 pct in July-Sept from year ago

(Reuters) - India's economic growth accelerated to a slower-than-expected 7.3 percent in the three months through September from a provisional 7.1 percent expansion in the previous quarter, data showed on Wednesday.

SHILAN SHAH, ECONOMIST, CAPITAL ECONOMICS

"In terms of the policy implications, today's release is unlikely to have much of an impact.

"The RBI itself has expressed doubts about the quality of the data and, in any case, its attention is likely to have turned to the impact of the government's demonetisation announcement at the start of this month.

"In the near term at least, this is likely to weigh on activity in sectors with high reliance on cash transactions.

"With the MPC (monetary policy committee) having already shown that it is willing to prioritise growth even at the risk of missing targets for inflation, we think that it will attempt to cushion the blow from demonetisation with another 25 bp cut in the repo rate (to 6.00 percent) in next week's policy meeting."

ADITI NAYAR, ECONOMIST, ICRA

"Both the and GVA expansion in Q2 FY2017 trailed our expectations, led by lower-than-expected agricultural growth and a contraction in mining.

"Today's release imparts a further downside to our and GVA growth forecasts of 7.5 percent and 7.3 percent for FY2017, which we had revised downward post-demonetisation.

"The deceleration in manufacturing growth in Q2 FY2017 relative to Q2 FY2016 was in line with our expectations, reflecting the lagged effect of a rise in commodity prices on earnings amid modest demand."

ANJALI VERMA, ECONOMIST, PHILLIPCAPITAL INDIA

"We have already lowered our number and we are now anticipating 6.8 percent (percent growth) for this year.

"I don't have to alter my numbers much based on today's data because anyway a lot is uncertain for the next two quarters.

"Public spending is good. I was expecting it to be a little lower, so that is impressive. I'm good with the numbers that they have given and I wouldn't alter anything in my projections."

(Reporting by Suvashree Dey Choudhury and Abhirup Roy; Compiled by Rafael Nam)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22