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India posts slowest economic growth since 2014
3 HOURS AGO by: Amy Kazmin
India’s economic growth slowed further to 5.7 percent in the quarter from April to June, the weakest performance since early 2014, blamed by some on lingering the impact of last year’s cash ban, and caution ahead of the adoption of a new value-added tax system.
It is the fourth consecutive quarter of decelerating growth – sharply down from the 7.9 percent growth recorded in the same period last year – and raises serious questions about the likelihood of reaching the government’s target of economic growth of over 7 percent in the current financial year.
Manufacturing fared particularly poorly, with output increasing just 1.2 per cent in the quarter, while output in construction grew just 2 percent. Growth in the period was was buoyed by a sharp increase in government services, which rose 9.5 percent in the quarter, as well as by am 11 percent increase in trade, hotels transport and communication.
Manufacturing has been weak in India since the second quarter of last year. But TCA Anant, India’s chief government statistician, said the particularly weak performance in manufacturing in the latest quarter likely reflected large companies selling out their inventories in anticipation of the launch of the new value added tax system on July 1. He said this suggested manufacturing could be poised for a revival.
https://www.ft.com/content/ca287882-c117-3c04-997f-3df88f1cd707
3 HOURS AGO by: Amy Kazmin
India’s economic growth slowed further to 5.7 percent in the quarter from April to June, the weakest performance since early 2014, blamed by some on lingering the impact of last year’s cash ban, and caution ahead of the adoption of a new value-added tax system.
It is the fourth consecutive quarter of decelerating growth – sharply down from the 7.9 percent growth recorded in the same period last year – and raises serious questions about the likelihood of reaching the government’s target of economic growth of over 7 percent in the current financial year.
Manufacturing fared particularly poorly, with output increasing just 1.2 per cent in the quarter, while output in construction grew just 2 percent. Growth in the period was was buoyed by a sharp increase in government services, which rose 9.5 percent in the quarter, as well as by am 11 percent increase in trade, hotels transport and communication.
Manufacturing has been weak in India since the second quarter of last year. But TCA Anant, India’s chief government statistician, said the particularly weak performance in manufacturing in the latest quarter likely reflected large companies selling out their inventories in anticipation of the launch of the new value added tax system on July 1. He said this suggested manufacturing could be poised for a revival.
https://www.ft.com/content/ca287882-c117-3c04-997f-3df88f1cd707
