Global Apparel Market – An Overview | Watch NOW! | Ad
Home / Knowledge / News / Textiles / India's Q1 GDP grows 7%, slowdown triggers concern
India's Q1 GDP grows 7%, slowdown triggers concern
07
Sep '15
India's economy grew 7 per cent in the first quarter of the current financial year, well below expectations and slower than the preceding three-month period, denting the Modi government's optimism about a strong recovery and adding to pressure on the central bank to cut rates.

The core sector index which measures the output of eight infrastructure industries rose just 1.1 per cent in July, pointing to the challenge facing the government in boosting investment and growth.

A relatively deficient monsoon with 11 per cent shortfall has raised concerns about rural demand with the festive season round the corner.

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


Must ReadView All

China reportedly cancels trade talks with US, Liu He visit

Apparel/Garments | On 22nd Sep 2018

China reportedly cancels trade talks with US, Liu He visit

Washington is reportedly positive about arriving at a solution to its ...

AmCham Cambodia cautions US against possible sanctions

Apparel/Garments | On 22nd Sep 2018

AmCham Cambodia cautions US against possible sanctions

In a letter to US lawmakers, the American Chamber of Commerce...

Courtesy: ycloset

Apparel/Garments | On 22nd Sep 2018

Alibaba invests in clothes sharing platform Ycloset

Chinese garment sharing platform YCloset has completed an undisclosed ...

Interviews View All

Amit Jain, Shingora Textiles Ltd

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Asim Dalal, Indo Count Retail Ventures

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Luke Otten, Wigwam Mills Inc

Luke Otten
Wigwam Mills Inc

Wigwam aims to recycle discarded yarn that doesn’t make it through the...

Erik Sy,

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Franco Ravazzi,

Franco Ravazzi

Italy-based Tessimenti E Orditi Tinti (T.O.T SRL) specialises in stocking...

John Kelley,

John Kelley

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

Johan Berlin, InvestKonsult Sweden AB

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Dave Rousse, INDA

Dave Rousse
INDA

INDA, the Association of the Nonwoven Fabrics Industry, serves hundreds of ...

Lynda Kelly, Suominen Corporation

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Ritu Kumar, Label Ritu Kumar

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Sandeep and Sarah Shaikh Gonsalves, SS Homme

Sandeep and Sarah Shaikh Gonsalves
SS Homme

SS Homme celebrates the craft of traditional tailoring through the bespoke ...

Nisha Chanda, Whistling Woods International School of Fashion

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

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


September 2018

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

news category


Related Categories:

Advanced Search