New Delhi, Dec 18 (IANS) The improvement in India’s economic growth after the slowdown in the July-September quarter is visible as movement indicators like fuel consumption, vehicles tolled and air traffic have strengthened, Jefferies said in a note on Wednesday.
The Jefferies economy tracker composite indicator shows growth pick-up sustaining in November with the indicator up 6.4 per cent year-on-year, the second fastest growth pace in 13 months.
“The festive season created month-on-month volatility due to Diwali timings,” it said.
The combined October-November activity growth at 6.5 per cent is a “substantial improvement” over recent months, with growth fastest in five quarters, the Jeffries report states. “We believe that the revival in government capex and liquidity rise on relaxed RBI policies should improve GDP growth in the quarters ahead,” the brokerage said.
Broad-based indicators mostly improved. During November, a significant improvement was seen in diesel consumption which saw the highest jump in 13 months, on a year-on-year basis, the report stated.
“Monetary tightening should be behind us,” analysts at Jefferies said in the note. The RBI’s stance on liquidity also reflected well in overnight liquidity being in surplus for past three months. We believe monetary conditions will continue to ease in early 2025,” Jeffries said.
Finance Minister Nirmala Sitharaman had also stated in Parliament on Tuesday that the lower-than-expected GDP growth in the second quarter of the current financial year is a “temporary blip” and growth would pick up in the coming months.
The finance minister pointed out that India has experienced steady and sustained growth, with an average GDP growth rate of 8.3 per cent over the past three years and continues to be the fastest-growing major economy.
“At 5.4 per cent, the Q2 growth rate is slower than expected. Q2 of this financial year has been a challenging quarter for India and most other economies of the world,” she said.
She also pointed out that there is no broad-based slowdown in the manufacturing sector. “A generalised slowdown in manufacturing is not expected, as it is restricted to a few segments. Out of 23 manufacturing sectors in the Index of Industrial Production, about half of them remain strong even now,” the Finance Minister further stated.
–IANS
sps/skp
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by TodayIndia.news and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of TodayIndia.news We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, TodayIndia.news takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
