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Quality of national income data: The debate is on

Quality of national income data: The debate is on
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Strong Start: Q1 GDP Growth at 1-yr High of 7 8%

market research: Strong start: Q1 GDP growth at one-year high of 7 8%

India s economy grew at a rate of 7.8% in the June quarter, driven by a recovery in services and an increase in investment. The data also showed an improvement in consumer demand. However, economists expect growth to moderate due to factors such as a below-par monsoon, high inflation, and an adverse global environment. Election spending and festive demand may provide some support to growth.

India s economic growth rises to a four-quarter high of 7 8% in Q1

“Rural demand is on a recovery mode and governments sustained capital expenditure push is crowding in private investments,” said chief economic advisor, V Anantha Nageswaran, on Friday post the data release. While experts point out that growth is likely to slowdown in the coming quarters as the base effect wanes, they indicated that a consumption boost closer to the end of third quarter may provide some succour to full year growth.

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