GDP at current prices, which includes the effects of inflation, was up only 8.8 per cent compared with 13.4 per cent in same quarter last year, suggesting that there are hardly any inflation pressures.
The slowdown is consistent with private forecasts that see India slowing from 7.3 per cent growth in FY15 because of the deceleration in the Chinese economy that's likely to pull down overall global growth.
Ratings agency Moody's has already lowered its growth estimate for the year to 7 per cent from 7.5 per cent estimated earlier, citing concerns on reforms and other factors.
Commenting on the latest GDP data, Federation of Indian Export Organisations (FIEO) Pesident S C Ralhan said that decline in merchandise exports by 16.75 per cent (contributing to about 15 per cent of GDP) and service exports by 7.08 per cent (with a share of about 7.5 per cent in GDP) had pulled down the GDP growth by over 3 per cent.
Ralhan said that achieving 8 per cent GDP growth in 2015-16 would be possible only if exports show an overall growth of at least 10 per cent during this fiscal, which at the moment looks challenging as first four months have produced negative results.
Apex industry body ASSOCHAM has also expressed concern over the latest GDP figure.
“Agriculture, mining, manufacturing, electricity, gas, water supply and other utility services remain to be key areas of concern as the gross value added for all these sectors has slowed down in Q1 of 2015-16 vis-à-Vis Q1 of 2014-15, though some progress is seen in trade, hotels and communications and construction sectors,” said Mr Rana Kapoor, president of The Associated Chambers of Commerce and Industry of India (ASSOCHAM)
He also called for a rate cut by the Reserve Bank of India. “Easing of monetary conditions would lead to a lower lending rate framework that would aid both consumption and investment demand, therefore the RBI in its upcoming bi-monthly monetary policy must give due consideration to reviving the industrial growth in the country,” he said.
ASSOCHAM also expressed concern over anticipated slow down in pace of reforms. “The Government needs to keep on pushing at more ground level reforms and improve implementation so as to realize the economy's true potential,” Kapoor said. (SH)
Fibre2Fashion News Desk – India
Apparel/Garments | On 3rd Dec 2016
Myntra is on track to achieve sustainable growth and be EBITA...
Textiles | On 3rd Dec 2016
The India International Textile Machinery Exhibition (India ITME)...
Textiles | On 3rd Dec 2016
Indian textile firms Laxmipati Sarees, makers of polyester sarees and ...
Orange O Tec
Contemporary industry is paying more and more attention to the...
Narayan Tex Fab
I find it hard to find professionals in Surat
‘The terms eco-friendly and organic are common but everyone perceives them ...
Biovation II LLC
Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...
The Indian market has huge potential in technical textiles, and by far,...
InvestKonsult Sweden AB
Investkonsult Sweden AB has been buying and selling second-hand textile...
Occasions Elegance Wear
It is believed that by early 19th century, Varanasi weavers had moved away ...
Gildan Activewear SRL
Gildan Activewear, a manufacturer and marketer of branded clothing and...
Yash P. Kotak
Bombay Hemp Company
One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...