As growth for Q1 races past estimates, experts question if it will sustain

Experts are of the opinion that the two sectors - manufacturing and agriculture - that aided GDP growth in Q1FY19 might slow in quarters ahead

With growth for the April-June quarter (Q1) of 2018-19 (FY19) racing past estimates of economists and experts to register the highest rate in nine quarters, they questioned if this momentum could be sustained for the rest of the year.

“Can this momentum be sustained? We have doubts about it, given both global and domestic headwinds. Our leading indicators are also pointing to a slowdown ahead,” said Sonal Varma of Nomura.

She added, “Higher oil prices and tighter global financial conditions could be external headwinds. Our view is the global economy is set to cyclically slow. We also expect the government