Bookmark Kaumudi Online  Bookmark this site  Editor@Kaumudi  |  Marketing  Print Advt rates  |  Calendar 2012        Go!    
 
 
March 27, Monday 2017 2:13 AM       

       HEADLINES: Firework mishap in Kollam again; three injured                                              Jisha case: Serious lapses on side of police, says report                                              Kerala driver attacked in Australia                                              A K Saseendran resigns from Pinarayi Govt over lewd talk                                              My resignation not acceptance of guilt: Saseendran                                              12 Indian fishermen arrested by Sri Lankan Navy                                              Will break limbs of those who kill cows: BJP MLA                                              Two nurses suspended                                              India doesn't impose its views on anyone: PM                                              Senior Al-Qaeda leader behind 2009 attack on Lankan cricket team killed                                              One killed, 13 injured in US nightclub shooting                                              Modi among Time magazine probable for most influential people                                              5 terrorists killed, 16 arrested in army raids in Egypt                                              India finishes 248/6 on Day 2                                              FIFA praises infrastructure at IG Stadium                                              Kaumudi Facebook
       BUSINESS Next Article: Biz yet to fully recover from demonetisation impact: Bosch  
       Economy to grow 7.1% in FY17, Dec qtr GDP surprising: Fitch
 
         Posted on :18:58:50 Mar 7, 2017
   
A A
       Last edited on:18:58:50 Mar 7, 2017
         Tags: Economy, GDP, Fitch
 
NEW DELHI: Global rating agency Fitch today said Indian economy will grow by 7.1 per cent in the current fiscal before stepping up to 7.7 per cent in the next two financial years.
 
The US-based agency, however, termed the 7 per cent GDP growth for the October-December quarter as "surprising", a tad lower than 7.4 per cent in the previous quarter.
 
"This number looks somewhat surprising, as real activity data released since demonetisation pointed to weak consumption and services activity because these transactions are cash-intensive. By contrast, official data suggest that private consumption was strong in the fourth quarter of 2016 (though services output growth moderated quite substantially)," Fitch said.
 
Fitch expects Indian GDP to grow by 7.1 per cent for 2016-17, before picking up to 7.7 per cent in both 2017-18 and 2018-19.
 
It said the December quarter GDP number suggests that economic activity was "hardly hit" by the cash crunch after the government's move to remove 86 per cent of currency in circulation overnight.
 
On this discrepancy, Fitch said it could be the inability of official data to capture the negative effects of the demonetisation on the informal sector.
 
However, the formal sector remained surprisingly robust.
 
"This raises the possibility that these initial estimates of the growth impact of demonetisation could well be underestimated, with the possibility of revisions to official GDP data later on," it said.
 
"Gradual implementation of the structural reform agenda is expected to contribute to higher growth, as will higher real disposable income, supported by an almost 24 per cent hike in civil servants' wages at the state level," Fitch said.
 
Fitch projection of growth for this fiscal is in line with the estimates of CSO and global think-tank OECD.
 
The rating agency said it expects the policy interest rate to stay at its current level of 6.25 per cent. 
A A
       BUSINESS
Next Article: Biz yet to fully recover from demonetisation impact: Bosch
 
 
BUSINESS HEADLINES
Aditya Puri features in Barron’s 30 best CEOs  
India is 3rd largest aviation mkt in domestic traffic  
China win for Apple as court overturns iPhone ruling  
CBEC to be renamed CBIC under GST regime  
Sebi bans RIL from equity derivatives market for 1 year  
Sensex up for 2nd day, Nifty reclaims 9100 as bank stocks gain  
Govt may table 4 GST bills in Parliament today: Minister  
Airfares in India among 'lowest' globally: Sinha  
Sensex tanks 318 pts, Nifty slumps below 9100 on global clues  
Notes ban to spur economic activity: Govt  
Govt nod for 18 new airports costing Rs 30,000 cr  
Govt nod for 18 new airports costing Rs 30,000 cr  
Adani Enterprises acquires Adani Infra  
Vodafone, Idea Cellular to create new Indian market leader  
Softbank appoints Kabir Mishra to Snapdeal board  
Idea to sell 2G, 3G, 4G mobile data at same price from Mar-end  
Airbus to set up its first Asia training facility in Delhi  
BSNL offers 2GB data per day, unlimited calling for Rs 339  
Sensex soars 188 pts, Nifty at fresh closing peak on Fed move  
Prominent Australians ask Adani to abandon coal mine project  
Harley-Davidson launches Street Rod at Rs 5.86 lakh  
India imports petrol, diesel from China  
Rupee hits 1-1/2 yr high, surges 78 paise on BJP sweep  
Tata Steel, Wipro in world's most ethical companies' list  
Google in talks with China to stage a comeback: report  
 
Do you support the choice of Yogi as UP chief minister?
yes
 
no
 
don't know
 
 
 
Home Kerala India World Business Sports Sci&Tech Education Automobile CityNews Movies Environment Letters 
© Copyright keralakaumudi Online 2011  |  Reproduction in whole or in part without written permission is prohibited.
Head Office Address: Kaumudi Buildings, Pettah P.O, Trivandrum - 695024, India.
Online queries talk to Deepu Sasidharan, + 91 98472 38959 or Email deepu[at]kaumudi.com
Customer Service -Advertisement Disclaimer Statement   |  Copyright Policy