D&B raises GDP forecast to 7.3%: D&B

Research firm Dun & Bradstreet (D&B) today revised upwards the economic growth forecast for the third quarter to 7.3 per cent from 6.8 per cent on the back of a stunning industrial recovery im the recent months.

"We have revised our GDP forecast for Q3 to 7.3 per cent, from the earlier 6.8 per cent, given the buoyancy witnessed in industrial activity in this quarter," D&B said in a release here today.

The third quarter GDP figure is slated to be announced on February 26.

Industrial production surged to a 16-year high of 16.8 per cent in December, against the contraction of 0.2 per cent in the same month a year ago, driven by a robust performance by the manufacturing sector, particularly consumer durables.

D&B expects industrial production to have grown by 13.5- 14.5 per cent during January.

It further said a whole host of macroeconomic data released recently points towards improving economic activity.

However, it said, a sustained recovery in domestic demand is warranted for continuance of this performance, more so in the event of a gradual unwinding of the stimulus provided by the government.

To help the industry tide over the impact of the global financial crisis, the government came up with three stimulus packages sacrificing Rs 1.86 lakh crore in revenue.