Country’s GDP growth may slow in December quarter – India TV Hindi

GDP Growth Rate- India TV Paisa
Image: File GDP growth rate

Country In the December quarter of the current financial year, India’s economic growth rate may be 6.7 to 6.9 percent. This is lower than the second quarter’s growth rate of 7.6 percent due to the poor performance of the agriculture sector. This assessment was made in a SBI Research report released on Wednesday. The report comes a day before the release of official GDP growth data for the third quarter of the fiscal year 2023-24. In the second quarter of this fiscal year, the economic growth rate was 7.6 percent, which is much higher than expected. Along with this, India has been the fastest growing country in the world. The increase in growth rate was mainly due to increase in government spending and manufacturing activities.

Estimates of Decline in Growth Rate

SBI Research’s third-quarter growth estimate of 6.7 percent to 6.9 percent is lower than the Reserve Bank’s estimate of 7 percent growth. With this, SBI Research has forecast a growth rate of 6.8 percent in the fourth quarter. SBI Research said the weak performance of the agriculture sector is the main reason behind the low growth forecast in the October-December 2023 quarter. Apart from fishing, all agricultural sectors have been badly affected.

Crop area decreased.

According to the agriculture ministry’s first advance estimate, production of major kharif crops in 2023-24 is estimated at 148.5 million tonnes. This is 4.6 percent less than a year ago. According to the report, the total area sown for Rabi crops has slightly increased compared to last year, but there is concern regarding the area in the case of grains. There is a decrease of 6.5% compared to last year. Accordingly, if the Rabi production does not cover the shortfall of Kharif, the value addition in the agricultural sector will decrease.

Good growth in profits of companies

On the other hand, the net profit of around 4,000 listed companies has grown by over 30% year-on-year in the third quarter of the current financial year. While their business has increased by about 7%. Additionally, around 3,000 listed companies, excluding BFSI (banking, financial services and insurance), have reported improvement in margins. Margins of these companies increased to 14.95 percent in the third quarter from around 12 percent in the same quarter last year. The gross value added (GVA) of the companies has increased by around 26% on a year-on-year basis. It is calculated based on operating profit and employee expenses.

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