Home / Knowledge / News / Textiles / India's GDP growth to slow down: Credit Suisse

India's GDP growth to slow down: Credit Suisse

17
Sep '18
India
India’s gross domestic product (GDP) growth likely peaked in the first quarter of the current fiscal and as a weaker rupee and rising oil prices remain major drag factors for the economy, some moderation is expected later, Credit Suisse said in a research note. Monsoon deficit is 6 per cent and the acreage under kharif sowing is flat year-on-year, it said.

Kharif is the autumn crop sown at the beginning of the summer rains. Despite being ‘encouraging’, the 8.2 per cent GDP growth in April-June quarter was largely due to base effects, the global financial services company said.

“These two headwinds could turn out to be a double whammy for India, exerting an upward pressure on inflation and downward pressure on growth,” a news agency quoted the research note as saying.

Despite headline inflation easing in recent months because of benign food inflation, the core inflation is inching up and all these factors could prompt the Reserve Bank of India (RBI) to raise interest rates once again by 25 bps–with a risk of a 50 bps hike–in the October policy meeting, according to the note.

Higher interest rates will have a negative impact on growth expectations as well.

Economic growth is expected to gradually get support from strengthening bank balance sheets as more companies exit bankruptcy, and as goods and services tax (GST) implementation progresses further, it added. (DS)

Fibre2Fashion News Desk – India


Must ReadView All

Pic: UBC

Apparel/Garments | On 25th May 2020

Canadian researchers develop biodegradable medical mask

Researchers in the BioProducts Institute at the University of British ...

Pic: Shutterstock

Apparel/Garments | On 25th May 2020

Sri Lanka’s BOI to set up garment park in Eravur

Sri Lanka’s Board of Investment (BOI) will set up a garment park in...

Pic: Shutterstock

Retail | On 25th May 2020

Reitmans seeks bankruptcy protection in Canada

Reitmans (Canada) Ltd. recently filed for bankruptcy protection after ...

Interviews View All

Janak Dhamanwala & Sunil Dhamanwala, Jansun

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Smith Vaghasia, Sanado India

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Veronique Lee, Modavanti

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Marcus Hardelauf,

Marcus Hardelauf

Germany-based Textechno is one of the leading manufacturers of testing...

John Kelley,

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Himanshu Fogla,

Himanshu Fogla

Jumac, pioneers in spinning can manufacturing in India, was founded in...

Suresh Patel, Sidwin Fabric

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Kerem Durdag, Biovation II LLC

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Hemant Bheda, Arevo

Hemant Bheda
Arevo

Arevo, based in Silicon Valley in California, develops technology to...

Wendell Rodricks, Wendell Rodricks

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Aprajita Toor, Aprajita Toor

Aprajita Toor
Aprajita Toor

The creations by Aprajita Toor were born out of a deep desire to create...

Anjali Bhaskar, Samatvam

Anjali Bhaskar
Samatvam

Anjali Bhaskar has an experience of 12 years in the fashion industry. She...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


May 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search